Some Winterizing Tips for Prescott Homes

It is important that you take measures to ensure that your heating and cooling bills are as low as possible. These winterizing tips for Prescott homes will assist you in reducing your consumption levels during the cooler times of year:

Change Furnace Filters

When you notice signs that the temperature will be dropping soon, place a brand new filter in your furnace. Do so once each month until you know that your seasonal use is complete. When you place the first filter of the season, mark your digital calendar at monthly intervals throughout the cold season.

Locate and Repair Drafts

While windows and doors are the most obvious places for drafts to occur, switch-plates, dampers and hatches are all possible culprits. You may already know where some are, and you can do a visual inspection of the various entryways into your home, such as where your phone and cable lines enter. If you do not want to hire a professional, but want a more accurate assessment of your air flow problems, do the following:

  • On a highly windy day, turn off all of your gas appliances, including the pilot lights and ensure that your fireplace is extinguished.
     
  • Close all openings to the outside, including your flue, and turn on all of the exhaust fans that go from your home.
     
  • Use a wet hand, or an incense, to move over the areas with potential leaks.

Unocuppied Homes

Make sure that the thermostats on unocuppied homes are set no lower than 55 degrees to prevent broken pipes.

Exterior Faucets

Drain as much water as possible and remove hoses or connections from the spigot. Next inspect for any leaks and repair if necessary. Lastly you may want to install a hose bib cover for each outlet, they are simple to install and an inexpensive way to help protect your exterior faucets.

 

 

 

New Lending Trends in Buying Real Estate

When it comes to new lending trends in real estate, it is very important to take into account the laws which govern traditional mortgages and similar loans.

What is TRID?

TRID is an acronym of four mortgage acronyms which is a result of the Dodd-Frank Act. TRID stands for the following;

  • Truth in Lending Act (TILA)
  • Real Estate Settlement Procedures Act (RESPA)
  • Integrated
  • Disclosure

Essentially, TRID is a combination of TILA and RESPA and the result is primarily designed to eliminate the one day notice that often came at the end of the day right before closing. This often meant that the buyer had very little time to read and figure out what was on the page. The Dodd-Frank Act hopes to avoid the conditions that caused the housing collapse and mortgage crisis of 2008 with TRID by helping to better inform buyers about the costs and risks of purchasing a home.

TRID now requires a three business day notice instead of one day which allows buyers to have the time to fully read the contract. However, there are exceptions to this rule in that it can be voluntarily waved although that is not recommended. Plus, it only applies to lenders who only make 5 or more loans each year and it does not apply to reverse mortgages, HELOCs, and mobile homes or residences not affixed to real property.

New Lending Trends in Real Estate Market

For the most part, TRID affects investors who flip properties as traditionally such sales happen very quickly. The tricky part is that any change to the loan terms re-starts the three business day clock which may throw off the timing of the deal.

Amend/Extend: If the closing should become delayed due to TRID, one trend is to write up an Amend/Extend to change the date of the closing. While this might take a few days, it tends to keep the deal in place. During this time, it is important that the new buyer does not occupy the home until the deal is closed.

Looser Credit: There is a new lending program from Fannie Mae and Freddie Mac that requires a down payment of just 3.5%. While there is some risk to this type of loan, many borrowers are jumping on the low rates thanks to the recent reduction of mortgage insurance costs. This means that first time buyers are now more likely to qualify for a loan.

Smaller Homes: There is a big run on properties that are about 10% smaller than a decade or so ago. This means that buyers are looking to shrink their carbon footprint and buy more energy efficient homes for their needs.

Overall, the housing market has arguably recovered from the crisis in 2008. However, with new regulations in place such as TRID, it does make it a little harder for investors to flip homes quickly. For the average consumer, smaller homes and lower down payments is the current trend that is dominating the real estate market at least for the time being.
 

To learn more about TRID contact our highly experienced real estate professionals today!

 

Prescott, AZ Real Estate Market Trends

There are some advantages that come with investing in real estate in the so called small towns, the beauty and atmosphere of these places is alluring, there is safety, friendly communities and above all the prices are pocket friendly compared to chocking big cities environment.

Prescott is one of the places that rewards both the sellers and buyers, the town is unrivalled in terms of vibrancy, even in a situation where the market prices are plummeting, and houses are being bought and sold on a daily basis in this real estate paradise. Arizona as a state has doubled its population over the last two decades and continued growth is anticipated even for the next several decades, this means that the market will continue to be vibrant many years to come making it an ideal destination for those who would like to buy or sell properties. Prescott’s mild climate will continue attracting more people, increasing the demand for properties.

Currently the average home value in Prescott Arizona and surrounding areas is $164,393; this is a figure which is thirty seven percent lower than the average price at which the properties are sold- $ 260,160. Comparing with the Arizona average home value which stands at $225,000, Prescott and surrounding areas real market values are lower than the state average but surprisingly when it comes to sale prices, the homeowners in Prescott are reaping big profits as the average price stands at $260,610, this is $100,000 more than the valued price. Going down to value price per square foot, Prescott stands at $70, while the average sale price per square foot for this market stands at $124. This tells us that the market is currently favoring buyers. With the projected future population trends and economic boom in the state and the whole of America in general, the trend is expected to continue.

The Absorption rate

Absorption rate is a parameter that is used by the market to classify a real estate market; it normally refers to the number of months it takes for a property to sell at the prevailing rates. An absorption rate of less than four months is classified as sellers market; here the homes sell at high rate as the demand is high. When the absorption rate is between four to nine months is considered a balance market as there is neither a sellers nor a buyers market. A rate of nine months and above means that the homes are selling at a slower rate giving the buyers an advantage as the demand has plummeted. Properties which are highly priced are known to have a higher absorption rate compared to the average priced. Prescott real estate market just like many areas in United States has recorded cyclical movement in terms of absorption rate. Currently the sale prices are higher than the average value, this means that the buyers are willing to pay more than, recording a producer’s surplus. Give that the demand for real estate is projected to rise especially in small towns, the absorption rate will fall, a situation which is described as a sellers market. It does not mean that the buyers will not benefit from the situation; they are bound to get properties which meet their needs and high in terms of quality as developers aim at giving the best in the market. Buyers and sellers can use the absorption rates to tell when to sell or buy their Prescott real estate. When the market is a seller market, those who are looking to sell can take advantage and get a good price for their properties while buyers would gain more when the demand is low.

The Kathleen Yamauchi Group Real Estate has in depth knowledge of the Prescott Arizona real estate industry. With a common goal: We will make your real estate transaction a smooth and pleasant experience, we draw from our specific strengths and unique real estate training to provide our clients with services and results that you will not get from a single real estate agent, or simple real estate partnership. Contact us today to learn more!