Lee Morof's Real Estate Blog

The kids are back in school, the weather is getting cooler and your yard is covered in a layer of fallen leaves. Yep, it’s that time of the year again, but don’t think of fall leaves as a chore. They can be a useful resource for fertilizing your lawn or even decorating your home for autumn.

Finish The Raking

It’s tempting to just let the leaves lie in the yard. It’s good fertilizer anyway, right? Wrong. You should rake everything up as soon as the trees begin to look bare, or else risk the blanket of leaves smothering your lawn over the winter season. Gather them up in plastic bags and put them to use.

Refuse To Rake Leaves

If you can’t bring yourself to pick up a rake, you do have an alternative. Wait until the leaves are dry and crunchy and fire up the lawnmower once more before winter. Many mowers have a mulch setting that will chop the fallen leaves to bits.

The smaller pieces won’t suffocate your lawn, and the crushed leaves make a good fertilizer. If you’d rather use the leaf bits in the garden or a flowerbed, use a grass clipping catcher with your mower to gather up the pieces as you mow.

Use Mulch And Fertilizer

Fresh chopped leaves are a good homemade mulch. Put a layer on the garden and the flower bed to replenish the soil over winter. Also, be sure to put a thick layer around young trees and shrubs to keep them warm. If you really want to get the most out of your leaves, then take them to the compost pile.

Mix the leaves in with the regular green yard waste, and the leaves will boost the composting process into overdrive. The fully composted material makes a potent fertilizer.

Get Crafty

Set some leaves aside to take indoors. The changing colors of the fall leaves are part of the beauty of autumn. Why not bring some of that beauty into the house?

Fill a vase with leaves for a seasonal centerpiece, or use a wire frame to make a wreath for the front door. You can make leaf etchings with the kids or simply use one as a bookmark.

It’s sad to see so many fall leaves burned up in piles, or put out with the trash. The leaves on the lawn aren’t just a mess to be cleaned up. Inside or outdoors, autumn leaves are an easy, natural, and free material. Be sure to put them to use!

Existing home sales for September fell by 1.90 percent from August’s revised reading of 5.39 million sales to 5.29 million sales. Economists had expected 5.30 million sales for September, so a slow-down in existing home sales had been anticipated.

The National Association of REALTORS cited higher home prices and mortgage rates as factors contributing to fewer sales of previously owned homes.

Home Prices Easily Outpaced Income Growth

According to Lawrence Yun, NAR’s chief economist, home prices “easily outpaced income growth.” Consequently, affordability has fallen to a five-year low. Mr. Yun also indicated that a government shutdown was expected to affect home sales in October.  

NAR also cited a “notable increase” in federal flood insurance premiums as a deterrent to homebuyers in flood zones. The premium increase was set for October 1. 

There is some good news. The NAR reported that existing home sales had increased from 4.78 million in September 2012. As compared to the reading for September 2013, this was an annual increase of 10.70 percent in existing home sales.

This increase represented the 27^th consecutive month for increasing sales of existing homes on a year-over-year basis.

Higher National Median Home Price

According to the NAR report, the national median home price increased by 11.70 percent to $199,200 as compared to one year ago. This was the 10^th consecutive month of double-digit year-over-year increases in existing home prices.

NAR estimated that it would take five months to sell the 2.21 million previously owned homes currently available, which indicates that available existing homes remain in short supply.

Sales of distressed properties rose to 14.00 percent share of existing home sales, up from August’s share of 12.00 percent.  August’s level was the lowest share of distressed properties sold since NAR began tracking monthly sales of distressed properties in October 2008. Sales of distressed properties during September included 9.00 percent foreclosed properties and 5.00 percent short sales.

Distressed properties typically sell for less than market value; fewer distressed properties included in existing homes for sale would contribute to higher prices. September’s percentage of distressed sales is down by 10 percent year-over-year.

Many of the economic and housing reports typically scheduled were delayed by the federal government shutdown.

The National Association of Homebuilders Wells Fargo Housing Market Index for October was released Wednesday with a reading of 55, lower than the projected 58 and previous month’s revised reading of 57. The original reading for September was 58, which was the highest measure of builder confidence since 2005.

NAHB cited concerns over mortgage rates and the federal government shutdown and its consequences as reasons for homebuilder confidence slipping.

While the NAHB HMI reading was lower than last month, it remains in positive territory as any reading over 50 indicates that more home builders are confident about housing market conditions than those who are not.

Pent-up demand for homes is fueling home builder confidence, which grew by 34 percent over the past year and exceeded the rate of home construction growth.

NAHB Releases Housing Starts Data For September

The Census Bureau was unable to release data on housing starts for September. NAHB released a report estimating September housing starts would be approximately 900,000 units on a seasonally-adjusted annual basis.

Single family home construction is expanding while multi-family home construction remains volatile. The NAHB report estimates single-family housing starts for September at between 620,000 and 630,000 homes annually.

Fed Beige Book: Residential Real Estate Improved, 4 Districts Report Slower Growth

The Fed released its “Beige Book” survey of its 12 banking districts on Wednesday. eight districts reported little or no change in economic conditions and 4 districts reported slower economic growth for September and October.

Real estate and home construction were improved, although several Fed districts reported concerns over rising mortgage rates.  The Beige Book report was based on data gathered October 7, one week after the government shutdown began.

Mortgage Rates, Weekly Jobless Claims Jump

Freddie Mac reported increases in average mortgage rates; the rate for a 30-year fixed rate mortgage was 4.28 percent with discount points unchanged at 0.70 percent.This was five basis points higher than the previous week.

The rate for a 15-year fixed rate mortgage rose by two basis points to 3.33 percent. The average rate for a 5/1 adjustable rate mortgage rose by two basis points to 3.07 percent. Discount points for both 15 year mortgages and 5/1 adjustable rate mortgages were unchanged at 0.70 percent and 0.40 percent respectively.

Weekly jobless claims reported on Thursday rose from the prior week. 358,000 new jobless claims were filed as compared to the expected number of 335,000. During the prior week, 373,000 new jobless claims were filed. The latest data was from the week of October 7, the second week the government was shut down.

What‘s Ahead: Delayed Government Data Expected

Some federal agencies have given dates for releasing data delayed by the shutdown. These included Nonfarm Payrolls and the Unemployment rate for September, which are set for release October 22. The Consumer Price Index and Core CPI for September are scheduled for October 30. 

As the temperatures start to drop, we spend less time outdoors and more time inside where it’s warm. Unfortunately fall pests have the same idea. This is the season when rodents and cockroaches seek shelter from the cold.

They can carry diseases like salmonella and Hantavirus as well as cause damage to your wiring; so make sure you take precautions to keep the pests away from your home.

Seal Up Your House

Pests have an incredible ability to sneak into your home through the tiniest of holes. A mouse can squeeze through even a dime-sized hole. Double check the screens on your windows for any tears or holes, and replace any damaged screens.

Caulk the edges of your windows and inspect the weather stripping under doors to make sure there’s no way for pests to get in.

Keep The Firewood Away

Don’t stack firewood against your house. A woodpile serves as a safe haven for rodents, and if it’s too close to your house, the mice will find a way in. Keep it at least twenty feet away. Overgrown bushes and shrubs can have the same effect so keep them trimmed and weeded.

Check Your Dryer Vent

A common entry for pests can be the laundry room. When a dryer isn’t installed correctly, the vent can be left open to the outside air, and this open vent can be an open door for critters. Double check your vent to make sure it’s fully sealed. It could be raising your electric bills as well.

Keep Your Food Out Of Reach

Nothing attracts pests more than food. Don’t leave crumbs on the floor and be sure everything in the pantry is closed and sealed. A common mistake is to leave dog food out. Keep the bag sealed, and empty the bowl. You’re feeding your dog after all, not the fall pests.

Moisture Is The Enemy

Moisture breeds pests. You don’t want any standing water around your house, so clear any clogged drains or gutters. Rake moist soil and mulch away from the house a few inches as well to keep the bugs away from the walls.

Monitor For Infestation

Put some mousetraps and glue traps in your attic and basement. Hopefully, there won’t be anything to catch, but if you keep traps out, then you’ll know at the first signs of infestation.

As it gets colder, fall pests are searching for a warm, dry place to stay. With a few simple measures you can make sure that warm, dry place isn’t your house. Take the time now and boost your defenses against the fall pests, and avoid an infestation later.

The National Association of Homebuilders/Wells Fargo Housing Market Index dropped two points to 55 from September’s revised reading of 57. Builder concerns over labor costs and availability and economic uncertainty related to the federal government shutdown were noted as factors contributing to the lower reading for October. 

Key Points Noted In October‘s HMI included:

• Builder confidence remains above 50, which indicates that more builders have a positive outlook on housing market conditions than those with negative sentiment.
• The October HMI cites pent-up buyer demand in markets throughout the US as a positive influence on October’s reading.
• A spike in mortgage rates lowered builder confidence, but the Federal Reserve’s decision not to change its quantitative easing program eased fears about rapidly rising mortgage rates.
• The federal government shutdown, along with builder and consumer concerns about the national debt ceiling also contributed to a dip in homebuilder confidence.  
• National HMI results are comprised of homebuilder ratings of three factors. Homebuilders rated current market conditions at 58, which was two points lower than September’s reading. 
• Builder outlook for market conditions over the next six months fell by two points to October’s reading of 62. The lowest reading came in at 44 for buyer foot traffic. This reading was also two points lower than the September reading.

Regional HMI Results Mixed

Readings for regional homebuilder confidence varied for October:

Northeast: The reading for October fell three points to 38. Concerns over the government shutdown were felt here.

Midwest: Up by one point for October at 64, the Midwestern region posted the only gain for October.

South: The October reading for the Southern region was unchanged at 56.

West: The West lost one point on its HMI for October. Lack of available homes and developed land for building likely contributed to this reading.

NAHB Projects Single And Multi–Family Housing Starts

The NAHB estimated that starts for single and multi-family housing units for September will fall between 875,000 and 900,000 on a seasonally-adjusted annual basis. Single-family housing starts are expected to range between 620,000 and 630,000 for September. 

NAHB produced this estimate in lieu of the US Department of Commerce report on housing starts that was delayed due to the federal government shutdown. NAHB also reported continued volatility in multi-family housing construction. 

A continuation of the government shutdown will almost certainly create ongoing consequences for housing and mortgage lending.

You might love your furry friends, but are their pet odors turning off potential buyers when you are trying to sell your home?

Many cat and dog owners are around their animal companions so often that they become immune to the smell and don’t notice it in their home, so you might not even realize that your home smells of pet odor.

However, when you are selling your property first impressions are very important and if a potential buyer gets a whiff of pet odors when they walk in the door this can really make them lose interest in your property.

Ask your real estate agent for an honest opinion. If they say that you have a problem, here are some ways that you can freshen up your house without getting rid of Fluffy or Fido.

• Air everything out. Open up all of the windows to let the fresh air come in from outside and sweep away all stuffiness and smells.
• Wash the floors and the walls with vinegar, floor cleaner or an odor-neutralizing cleaning product. You can find pet-specific cleaning products at pet supply stores.
• Pet smells can seep into fabrics, so steam clean or dry clean your fabric drapes and upholstery.
• Washing blankets and bedding in a mix of laundry detergent and a quarter cup of apple cider vinegar can help to remove the smells.
• Before showing off your home, have your carpets professionally cleaned so that all of the deep-down dog hair and cat dander will be removed.
• When potential buyers come over, you can place potpourri or scented candles around the room in strategic locations. However, be careful that you don’t go overboard as some people are sensitive to strong perfumes.
• Keep your pet contained to one section of the house to make cleaning easier and keep the rest of the house smelling fresh. If at all possible, have your pet stay with a friend when the home is being shown.

With these tips, you should be able to present a fresh-smelling first impression to anyone who comes to view your home. For more information about selling your property, contact your trusted real estate professional. 

By the time you get to the final walkthrough on your property, the home buying process is almost complete. However, it is still important to pay close attention to this final step, as it will be crucial in the success of your home purchase.

The final walkthrough is your last opportunity to ensure that everything in the home is in working order and that there are no potential problems waiting for you when you take over ownership of the property.

While conducting a final walkthrough of the property, give yourself enough time to look carefully at everything and not be rushed. You are looking for any new issues that might have arisen since the last time you viewed the home.

Once you close on the purchase the previous owners will not be obligated for fixing any damage. For this reason, you should schedule your walkthrough approximately 24 hours before closing on a home.

What You Should Look For?

When you are performing your walkthrough, here are some of the important issues that you should be watching out for:

• Are all major appliances in working condition? Do they all have their warranties and owner’s manuals?
• Do all of the light switches and outlets work?
• Have any of the fixtures or appliances gone missing, even though the seller agreed to leave them behind?
• If you have agreed on any repairs, has the seller had these repairs completed?
• Are there any signs of damage (i.e. scratched walls or floors) as a result of the previous owner moving out?
• Do all of the water faucets and toilets function as they should?
• Check the exterior of the house, especially if there has been a storm or strong winds since your last visit.
• Did the previous owner leave any garbage, extra furniture or unwanted items behind?

What To Do If You Spot A Problem?

If you find a problem when you are going through your walkthrough, there are a few options of what you can do. If the issue is very serious, you might choose to walk away from the deal completely. However, if the issue is not that significant you might decide that it is not worth losing your dream home over.

You could simply pay for the repair yourself, or postpone the closing until the seller fixes the problem. If the repair was agreed upon during the negotiations, you have a legal recourse.

To find out more about buying property, feel free to contact your trusted real estate professional.

From crunched-up leaves stuck to bottoms of shoes to bulky coats shed as soon as kids walk through the door, mudrooms are ideal for keeping outdoor dirt, wet clothing and outerwear from being strewn throughout your home.

Mudrooms not only keep the rest of your house clean, but they also designate a spot for those last-minute grabs, such as coats, umbrellas and purses, when you’re running out the door.

These rooms are great catchalls. However, an organized mudroom can make your life and those hectic mornings much less stressful. Below are smart tips for getting your mudroom ready this fall.

1. Put In Seating

After shedding outer layers, the next thing anyone wants to do after coming inside on a cold, wet day is to take off their mucky shoes. So make sure there is a built-in bench or convenient chair for people to sit down and tend to their tootsies. Whether taking off or putting on shoes, it makes life a little more comfortable.

2. Install A Sink

A mudroom is supposed to be the catchall for everything dirty from the outdoors. With this in mind, a sink for washing off the grime and mud makes sense. Then you can clean your clothing in the contained space without having to haul them to the kitchen sink or laundry room.

3. Create Cubbies

Even though this space is designated as a drop-off point before entering the main living space, you don’t want everything just thrown into one big confusing pile. Create individual cubbies for every person in your household. Each cubby should contain a shelf for purses and backpacks, hooks for coats and a low place for shoes.

4. Splurge On A Boot Warmer

While electric boot warmers can be a little expensive, you will definitely think it’s worth the money when it’s freezing outside and your shoes are damp. Electric boot warmers heat your shoes on pegs and dry them out at the same time. They also work well on gloves.

Fall is a mudroom’s busy season; so get it in shape with the tips above. With all the coats hanging on their hooks, shoes in their cubbies and dirt contained to this designated space, your life will be a little more organized and much less stressful!

Home inspections are a tense time for everyone. Sellers are fervently hoping that nothing major is wrong with their home that could hold up the transaction.

Buyers are eager to hear that their new house is in prime condition. Whatever the wishes, one thing is for sure; any news from an inspector is usually bad news.

Home inspectors have a tough job. They have to be trained to spot hundreds of potential issues with a home and be knowledgeable of local codes, community restrictions and residential permit parameters.

Stay one step ahead of your home inspector by reading the list of common home inspection issues below. Then hopefully your inspection won’t reveal any unwelcome surprises.

Electrical Wiring

This is a common bubble-busting issue, especially in older homes. Wiring might have been up to code when the home was built, but it now violates code and is a fire hazard.

Look for ungrounded outlets, shoddy wiring or a mass of confusing connections in the electrical panel. Replacing an entire electrical system can be expensive, but it’s worth it not to risk a fire.

Plumbing

Look for signs of water damage in the ceilings. This could be a sign that something above, like a bathtub or sink is leaking into the floor or walls. Look around toilets and inside kitchen cabinets for traces of wet flooring or wood.

While external leaks are easy enough to fix, interior pipes might require you to rip up flooring.

Foundation And Framing

Examine the foundation and framing of your home for any structural issues. You’ll want to keep an eye out for cracking in the foundation due to water runoff or settling. Also, look for signs of wood rot or termite damage.

These issues affect the framing of your home and could cause scary structural problems if left unattended.

Roofing

While it’s probably too difficult for you to inspect the roof yourself, just stand back in the yard and see if you can notice any bare spots. Also, check for water damage around the roofline from rain leaking in. Don’t get too discouraged about roof issues. It might not call for a complete replacement, but just a repair on one section.

These common home inspection issues affect both sellers and buyers. As a buyer, you’ll want to keep a eye out for these problems so that you know what you’d be getting for your hard-earned money.

As a seller, it’s good to stay one step ahead of the home inspector so that whatever price is agreed upon goes through.

If you are looking to buy a home, you might be wondering whether you should be looking for properties that are right in the center of the city or whether a better option would be to buy a property on the outskirts or in a rural area a short drive away.

The rural or urban decision will ultimately be up to you, as there are advantages and disadvantages to either option. The main difference will lie in your priorities – what type of lifestyle is most important to you?

Living In The City

One of the main perks of buying a property that is located in the heart of the city is that you will be able to enjoy convenient public transportation and you won’t have to use a car to get everywhere.

You are likely to have a shopping center and a supermarket within walking distance of your home, as well as other important amenities such as a doctor’s office, a pharmacy, a post office and more.

Also, if you enjoy attending concerts, visiting art galleries or enjoying other artistic events, you will find much more of these concentrated in the city center. You will also enjoy more options when it comes to shopping.

Of course, living in the city center means that property prices are usually a lot higher and you will likely end up with a lot less space for your money. Your kids might not have as much room to run around (unless you find a home near an urban park or a playground). Also, the hectic pace of the city, with all the traffic and high rise buildings, can be stressful for some.

Living Outside Of The City

When you buy a home just a few miles outside of the city, you will find yourself experiencing a completely different lifestyle. You will be a lot closer to nature, with plenty of walking trails and wild areas right outside your back door. The air will be cleaner and you will be able to see the stars better at night time.

Many people feel safer letting their children play outside in the countryside and the cost of housing is usually lower than in the high density downtown core. Some people also prefer the peace and quiet of the city and would much rather go for a walk in the woods or have a campfire than attend a cultural event – so the country is the right place for them.  

Of course, the disadvantages of rural life is that it can be inconvenient and time consuming to drive into town to get supplies to meet up with friends. You must own a car in order to get around, as the public transport system will not be as good as it is in the inner city.

These are just a few factors to consider when determining whether you would choose the city life or the country life.

For more information on buying a home, whether in the heart of the city or on the outskirts, contact your trusted real estate professional.