10 Things Americans Want in Their Homes

There’s the ideal home. Then there are the homes in which we actually live.

The discrepancy between the two is the topic of a new report from the Demand Institute on what it calls the housing satisfaction gap. More than 10,000 households—including renters and owners—participated in a survey about their current homes and their ideal ones. The Demand Institute is a non-profit organization run by the Conference Board and Nielsen.

Overall, people are generally satisfied with their homes, but there are some desires—both discretionary and non-discretionary—holding people back from being completely happy with where they live, said Jeremy Burbank, vice president of the Demand Institute.

The following are Americans’ top 10 housing desires that, for some, aren’t being met.

1. Energy efficiency

Perhaps because the desire to save money on rising energy costs is so universal, energy efficiency has the highest satisfaction gap in the report. While 71% of respondents said they thought a home’s energy efficiency was important, 35% of those people said they were satisfied with their current home’s energy efficiency (a satisfaction gap of 36%), according to the report.

“The increase in the cost of energy has become increasingly burdensome on households,” and there’s accompanying awareness and concern about the environment, Burbank said. Average household spending on home electricity has grown 56% since 2000, according to the report.

2. A renovated home

Sixty-seven percent said a home that requires little or no renovations or improvements is important, while 41% of those people said they are satisfied with their homes (a gap of 26%). The top five major home improvement jobs consumers are likely to do in the next three years: paint walls, replace flooring, remodel a bathroom, remodel the kitchen and replace windows and/or doors.

3. Updated kitchens and finishes

Sixty-two percent said an updated kitchen with modern appliances and fixtures is important, while 38% said they were satisfied with their current home (a gap of 24%). This feature may be more important than in past years, as people report cooking and eating at home more now, compared with five years ago, according to the report.

4. Age-in-place features

Between now and 2020, the number of households headed by a person 65 and older is expected to grow 10 times faster than other households, according to the report. No surprise then that 76% of participants said that it’s important to live in a home that they can stay in as they get older. But only 53% of those people are satisfied with their current home on this front (a gap of 23%).

5. Safe communities

Eighty-three percent of those surveyed said that living in a safe neighborhood with low crime is important, but 61% said they’re satisfied with the safety of the area in which they’re currently living (a gap of 22%). Another telling statistic: More than one in five households report that their neighborhoods have become less safe in recent years—in urban as well as non-urban areas, according to the report.

6. Affordability

Eighty-one percent of those surveyed said that it’s important that a home’s cost fits in their budget, without requiring sacrifices, but 60% said they’re satisfied with their current home in this regard (a gap of 21%). Nearly 40 million households in the country spend 30% or more of their income on housing expenses. Housing affordability is getting worse for renters in particular, Burbank said.

7. Privacy

Sixty-three percent said they think it’s important that a home offers a lot of privacy from their neighbors, but only 42% said they’re happy with the privacy of their current home (a gap of 21%). This may be growing in importance because people are at home more often: 54% said they are spending more time at home these days, and 9% said they are spending less.

8. More space

Americans have a lot of stuff, and they need ample space for it. Nearly half of households have two or more refrigerators or freezers, and 48% have three or more TVs. Fifty-five percent of survey respondents said they think a home with a lot of storage space is important, while 35% are happy with their own home’s storage (a 20% gap).

9. Responsive landlords

Forty-seven percent said that a landlord who is responsive to maintenance requests is important, and 28% are satisfied with their current situation (a 19% gap). Some of the most difficult homes for landlords to manage are single-family home rentals, which have grown substantially in number—there are 27% more single-family rentals today than in 2006, according to the report.

10. A good investment

Sixty-five percent said that they think it’s important a home be a good long-term investment, while 47% said they were satisfied that their current home was a good long-term investment (an 18% gap). Still, “despite the dramatic drop in home prices between 2007 and 2012, Americans still overwhelmingly think that homeownership is an excellent investment,” Burbank said.

Source: Realtor.com By: Amy Hoak 

8 Benefits of Buying a House at Year’s End

Summer may be real estate’s busy season, but winter offers great opportunities for buying a house, especially for renters looking to become homeowners, growing families trading up to larger houses and baby boomers seeking homes to fit their evolving lifestyles.

Generally speaking, your housing choices during the late fall are still healthy. October and November are great months to go house hunting. December is usually sparse, market-wise, but if that fits your timeline, you could luck out.

The benefits to buying a house at the end of the year include the following:

1. Tax savings

If you close by December 31, you can deduct mortgage interest, property taxes, points on your loan and interest costs. These deductions are significant, especially in the early years of your loan when you’re paying off a lot of interest.

2. Motivated sellers

Many sellers want to enjoy tax savings on the next home they purchase. They may accept lower bids in order to meet Uncle Sam’s deadlines. However, if you’re in a strong seller’s market, you’ll want to be conservative and heed advice from your real estate professional.

3. Builder incentives

If you’re buying a house that is brand new, there’s a good chance builders may push to close the books on their year—and meet quotas. They may offer upgrades or little extras to sell houses before the calendar turns.

4. Available movers

Many moving companies are booked six weeks or more in advance during the busy summer months. In the fall and winter, it’s normally easier to secure the services of a moving company or rental equipment on shorter notice.

5. Paying toward something you own

If you’re renting, your monthly check goes toward something that will last you a month: You’ll never see any return on that money. When you buy a house, your monthly mortgage payment goes toward an investment—and ultimately a roof that’s yours.

6. Consistent payments

Landlords can increase your rent. Once you secure a mortgage, you can rely on consistent payments if you have a fixed-rate loan.

7. Freedom to renovate

Modernize your kitchen, paint your home’s exterior neon orange, change your fixtures or replace your carpeting; whatever inspires you, no one can tell you, “No!”

8. Gaining equity

In the beginning, most of your payment goes toward interest. But gradually more will go toward paying off your principal, meaning you build up equity—or savings—in your home. Another factor in equity is appreciation: As home values rise, so does your rate of equity.

Source: Realtor.com - Updated from an earlier version by Michele Dawson

Questionable home appraisals make a comeback

NEW YORK – Dec. 3, 2014 – Maitland, Fla.-based Digital Risk Analytics reviewed the loan files of the 20 biggest mortgage lenders and found that one in seven appraisals bloated home values by roughly 20 percent or more between 2011 and early 2014.

In some cases, "the appraiser's selection of [comparable properties] ... is very hard to justify," says Digital Risk Chief Analytics Officer Thomas Showalter. He cites examples, such as valuations for older properties based on sales prices for new homes; or homes located within a short distance of the beach compared to waterfront residences' values.

Some observers worry that some appraisers may be inflating values at the bidding of loan officers or real estate agents, whose commissions are taking a hit due to weak sales and slowing home price appreciation.

The U.S. Office of the Comptroller of the Currency is reviewing mortgages due to its concern that some are based on inflated values; and Freddie Mac has launched fraud investigations of appraisals tied to mortgages it purchased.

A survey by the Salisbury, Md., appraiser-advocacy firm Allterra Group LLC finds an increase in the percentage of appraisers pressured to inflate values. It's nearly 40 percent now compared to 37 percent a year ago, according to Allterra.

Valuation professionals say appraisal-management companies (AMCs) hired by banks apply the most pressure. While AMCs are expected to help maintain a buffer between loan officers and appraisers, and thus eliminate pressure to inflate appraisals, they increasingly scramble to keep a lender's business.

Source: Wall Street Journal (12/02/14) P. A1; Andriotis, AnnaMaria

Celebrity Real Estate: ‘American Idol’ Creator Simon Fuller Cuts Estate Price

Entertainment mogul and producer Simon Fuller knows how to find talent. Now he’s trying to find a buyer for his home in Beverly Hills, CA.

The man behind TV’s “American Idol”—no, not that Simon—Fuller has reduced the price of his house to $19.995 million, a 7% reduction from the initial asking price of $21 million back in April 2014. Trista Rullan is the listing agent.

Built in the Contemporary style, Fuller’s house features many art deco details: The stark color contrasts between the walls and flooring are most noticeable when you step into the house and encounter the swooping staircase.

The same bright white walls and deep dark floors are in the family room, kitchen and formal dining room—and the light fixtures follow along with the art deco theme.

The living room has the home’s only fireplace, and it’s a marble one at that. French doors open to a terrace with a fantastic view. The family room and kitchen lead into each other in a space with several more French doors that allow plenty of natural light.

The kitchen is gourmet, but it’s divided by a wall that houses the stovetop—you have to walk around it to get to your cabinets. The family room opens up to a patio.

Wine connoisseurs will toast to the wine cellar, which can store hundreds of bottle of vintage wines. And since it has its own table and benches, you can gather in the cellar for private wine tastings or use it as a meeting spot when you need a change of venue to get the creative juices flowing.

Overall, the property has five bedrooms, five bathrooms and three half baths. There’s also a theater, gym and a separate guest house.

Hailing from England, Fuller is an entertainment producer, manager and entrepreneur. He has launched the careers of many musical artists, including the Spice Girls and Kelly Clarkson. Fuller also created the popular TV show, “So You Think You Can Dance.” His latest venture is Blackwell Fuller, a management company specializing in entertainment and sports.

House nearing vote on 1-year package of tax breaks

WASHINGTON (AP) – Dec. 2, 2014 – Struggling to reach a long-term agreement, House Republicans plan to vote on a one-year extension of temporary tax breaks affecting millions of businesses and individuals.

Most of the more than 50 tax breaks expired at the end of 2013, so the extension would only run through the end of this month. However, it would allow taxpayers to claim the tax breaks when they file their 2014 tax returns.

The tax breaks benefit big corporations and small businesses, as well as commuters, teachers and people who live in states without a state income tax. In all, they affect about 1 in 6 taxpayers, according to The Tax Institute, the independent research arm at tax giant H&R Block.

Senate Democrats and House Republicans were negotiating to make some of the tax breaks permanent. But talks faltered last week after the White House threatened to veto an emerging package, saying it too heavily favored big corporations over families.

Talks are continuing among congressional aides. But with the House scheduled to adjourn for the year next week, House Republicans are preparing to vote on the short-term measure, said Rep. Dave Camp, R-Mich., chairman of the tax-writing House Ways and Means Committee.

"We were making really good progress until the president issued the veto threat, and that really caused, I think, a disagreement among Democrats about how to move forward," Camp said Monday. "That brought a halt to everything, so now we're looking at a one-year extension."

The House could vote as early as this week.

The IRS has warned that if Congress waits until the last minute to address the tax breaks, it could delay filing season and tax refunds. Each year, millions of families rush to file their returns so they can get quick refunds.

White House spokesman Josh Earnest expressed concerns Monday about a one-year extension, but stopped short of issuing a new veto threat.

"There are significant fiscal consequences for just a one-year extension, instead of a permanent extension," Earnest said.

Congress routinely passes the package of temporary tax breaks every year or two, drawing complaints from business groups that it is hard to plan from year to year.

A one-year package would bring more uncertainty next year. But it could give GOP lawmakers more leverage to eventually shape a long-term plan because Republicans take control of the Senate in January.

Business leaders have been pushing lawmakers to pass a long-term plan in the hope that it would help clear the way for Congress to focus on a broad overhaul of the entire tax code next year. Instead, lawmakers could find themselves replaying old fights over temporary tax breaks.

"I hate to say that it's difficult for Congress to walk and chew gum at the same time, but sometimes it is," said Rachelle Bernstein, vice president and tax counsel for National Retail Federation. "We've been through this over and over again."

Among the biggest breaks for businesses is a tax credit for research and development, an exemption that allows companies to shield foreign profits from being taxed by the U.S., and several provisions that allow businesses to write off capital investments more quickly.

There is also a generous tax credit for using wind farms and other renewable energy sources to produce electricity.

The biggest tax break for individuals allows people who live in states without an income tax to deduct state and local sales taxes on their federal returns. Another protects struggling homeowners who get their mortgages reduced from paying income taxes on the amount of debt that was forgiven.

Other more narrow provisions include tax breaks for film and theater producers, NASCAR racetrack owners, manufacturers of electric motorcycles, commuters who use public transportation and teachers who spend their own money on classroom supplies.

CoreLogic: U.S. home prices accelerated in Oct.

WASHINGTON (AP) – Dec. 2, 2014 – U.S. home prices rose at a faster year-over-year pace in October than in September, snapping a seven-month slowdown.

Real estate data provider CoreLogic said Tuesday that prices increased 6.1 percent in October compared with 12 months earlier. That was up from September's year-over-year increase of 5.6 percent.

Still, home values are rising more slowly than they were earlier this year, when 12-month gains were averaging nearly double their current pace.

The price momentum began to tail off in the middle of the year as home values in more cities and states neared the record highs last seen shortly before the Great Recession began in late 2007.

Higher prices have reduced affordability, especially because the incomes of many would-be buyers have yet to match their pre-recession levels. Lending standards also remain comparably tight.

Previous price increases led investors to pull back from the home market, and first-time buyers have yet to fill the void created by their departure.

Price growth will likely remain mild as a result, CoreLogic said. The firm projects that home values will rise 5.1 percent over the next 12 months. Roughly half the country's homes will match or surpass their pre-recession prices by mid-2015, it predicts.

Every state reported a price gain in October. CoreLogic said prices reached new highs in Colorado, Louisiana, Nebraska, New York, North Dakota, South Dakota, Tennessee, Texas and Wyoming. In 27 states, home values are within 10 percent of their previous peaks.

There are still pockets of the country – including parts of Texas, Seattle and Denver – where prices are rising faster than in the rest of the country because of their relatively strong job markets, incomes and home prices, said Sam Khater, deputy chief economist at CoreLogic.

Other real estate companies have forecast a sharper slowdown in price gains next year.

Zillow, the online home marketplace, released estimated Tuesday that home values will rise a mere 2.5 percent nationwide in 2015. That slowdown should ultimately help bring more buyers into the market and increase sales, said Stan Humphries, Zillow's chief economist.

Humphries said he thinks more homes will be listed for sale as prices edge closer to their previous peaks, giving buyers more options. At the same time, rental prices are expected to rise 3.5 percent. That should give people an additional incentive to buy.

"As renters' costs keep going up, I expect the allure of fixed mortgage payments and a more stable housing market will entice many more otherwise content renters into the housing market," Humphries said.

Mortgage lenders set to relax standards

WASHINGTON – Dec. 2, 2014 – In response to new guidelines from Fannie Mae and Freddie Mac effective Dec. 1, home lenders are expected to further loosen standards for borrowers and give thousands of additional customers access to a mortgage loan.

The guidelines clarify penalties for mortgage errors if loans are sold to Fannie and Freddie – what is, and what is not, misconduct in the lending business.

Prior to the new rules' release, the strict "qualified mortgage" rules rattled banks, and many created guidelines that went above-and-beyond the basic requirements, fearing that any misunderstanding would lead to bigger problems down the road.

However, the new orders effective yesterday give lenders less reason to worry. As a result, some experts predict that it will get easier for marginal borrowers to secure mortgage approval.

Wells Fargo and SunTrust are among the lenders that say borrowers should begin to see changes in a matter of weeks, such as faster turnaround times for processing mortgage applications. Lenders are also expected to lower credit score requirements and be more flexible if a borrower's credit was hurt by a job loss, large medical bill or other one-time event.

Mortgage Bankers Association President David Stevens says the guidelines mean that "some lenders are lifting almost all of their overlays" – the bank's current requirements that exceed Fannie and Freddie's requirements.

Source: Wall Street Journal (11/28/14) Light, Joe