ARE INTEREST RATES ABOUT TO RISE?

Federal Reserve Bank of New York President William Dudley says the central bank will scale back its purchases of mortgage-backed securities late next month. While interest rates likely will climb when the program ceases, the extent of the rise remains to be seen.

Dudley says the Fed will act if rates spike too much. Still, analysts worry that the end of the MBA purchase program and expiration of the home-buyer tax credit, along with higher premiums and tighter underwriting of FHA mortgages, will work together to stifle home sales and price stabilization in the coming months.

Source: Inman News (02/08/10)

© Copyright 2010 Information Inc.

MORTGAGE RATES TOP 5%

BLOGGER’S NOTE: Although this article from the Sun-Times reports nationally that mortgage rates were just over 5% last week, my experience in Houston is that Buyer’s were getting 4.875% for 30 year fixed conventional loans. There is little doubt, however that rates will be increasing.

Long-term mortgage rates climbed above 5 percent this week. According to Freddie Mac, 30-year fixed loans averaged 5.01 percent compared to 4.98 percent last week.

Here are the across-the-board averages for other mortgages:

15-year fixed loans rose to 4.40 percent from 4.39 percent
Five-year adjustable-rate mortgages climbed to 4.27 percent from 4.25 percent.
One-year ARMs fell to 4.22 percent from 4.29 percent a week ago.

Source: Chicago Sun-Times, Francine Knowles (02/05/10)

© Copyright 2010 Information Inc.

TOMDPLANT.COM – YOUR SOURCE FOR VITAL INFORMATION ABOUT HOUSTON’S CLOSE-IN NEIGHBORHOOD HOMES – MORE THAN 2000 VISITORS IN JANUARY

My website tomdplant.com continues to increase in popularity. Since I began to keep statistics in April 2009, unique visitors per month have increased from approximately 200 to more than 2,000 in January 2010.

The content will continue to improve and to be analytical and informative about the residential real estate market in Houston’s close-in neighborhoods. It will continue to be YOUR SOURCE FOR VITAL INFORMATION ABOUT HOUSTON’S CLOSE-IN NEIGHBORHOOD HOMES

BROKER OPEN HOUSE – 2316 WORDSWORTH – WEDNESDAY FEBRUARY 3 – 12:00 TO 2:00

This wonderful Southgate area (Windermere) home will be open for real estate agents Wednesday February 3 from 12:00 to 2:00. Lunch will be served and there will be a drawing for $50 Amex Gift Cheque available for agents only. 2316 Wordsworth

A classic Southgate area home with recent* updates.This spacious and well cared for home has 3 bedrooms,2.5 baths and wood floors throughout.The first floor living spaces are light and bright and are well suited for both formal and informal entertaining.The large 7,200 sf** lot provides a generous fully fenced backyard.The 2,253 sf** size does not include the bonus room located above the detached garage.The location with easy access to Medical Center,Rice U,Rice Village *=per seller **=per HCAD

2316 WORDSWORTH                                           OPEN 12:00 to 2:00                                           LIST PRICE $659,000

LOW-FLOW TOILETS HOW TO CHOOSE

Replacing an old water-guzzler with a new low-flow toilet can shave as much as $90 off your annual utility bill and send thousands fewer gallons of water down the drain.

By: Laura Fisher Kaiser

A lot has changed since 1994, when low-flow toilets became the law of the land. Early versions created a bit of a stink, because while they were good at saving water-using only 1.6 gallons per flush versus as many as 7 gallons-they weren’t necessarily good at doing a toilet’s main job.
Today’s low-flow models don’t have those problems. Not only are they much better performers, some also use even less water than the federal standard. So if you’re in the market for a new throne, it pays to consider a high-efficiency toilet (HET). You’ll save a bundle: According to the EPA, replacing pre-1994 guzzlers with new HETs will shave more than $90 off your annual utility bills. Plus, you’ll be sending thousands fewer gallons a year down the drain.

Look for high performers
The EPA’s WaterSense (http://www.epa.gov/WaterSense/) label on the box identifies HETs that have been certified by independent laboratories. They’re rated according to Maximum Performance (MaP) testing protocols, which measure the toilets’ ability to remove waste. MaP scores range from 250 to 1,000, based on the number of grams completely evacuated in a single flush. The EPA has adopted 350 grams as its minimum performance threshold, and “anything over 500 is very good,” says Terry Love, a plumber in Washington state who conducts his own thorough testing of low-flow toilets.
Choose a flush mechanism
Like standard low-flow toilets, HETs come with different flush options. The one you choose depends on how “green” you want to be, how much you’re willing to spend, and your tolerance for noise. Most residential toilets in the U.S. are gravity-flush, which, as the term implies, relies on the weight of water flowing into the bowl to help remove waste. Pressure-assist toilets compress air at the top of the tank to increase flush velocity, so they can do the job with as little as 0.8 gallons of water. While this turbocharged action makes for a powerful flush, the loud whoosh! may cause small children to jump out of their socks. (Somewhat counterintuitively, these also require good household water pressure to work properly.)
Some low-flow designs, like the minimalist Kohler Hatbox-so streamlined that it doesn’t even have a tank-flush with the aid of an electric pump. While that delivers a powerful flush without the noise, unlike a standard toilet it requires electricity, which can make for more complicated installation and costlier maintenance.
Calculate your savings
Toilets account for about 27% of a household’s indoor water usage, so trading up to a high-efficiency toilet can yield big savings. According to the EPA, a family of four that replaces its home’s older toilets with WaterSense-labeled models will, on average, save more than $90 per year in reduced water bills and $2,000 over the lifetime of the toilets. You can pocket even more by taking advantage of rebates and vouchers (http://www.toiletrebate.com/) offered by many states and municipalities. The city of Austin, Texas,(http://www.ci.austin.tx.us/watercon/sftoilet.htm) for example, gives residents up to three HETs for free, though there is a modest fee for certain design features, such as an elongated bowl or a seat that meets the ADA-required height of 17 inches.
And, of course, you’ll be saving a lot of water. Pre-1994 toilets send between 3.5 and 7 gallons down the drain with every flush. For a family of four, that adds up to about 76 gallons a day. And if the toilet leaks-that is, if it continues to run after you’ve flushed or sometimes trickles mysteriously on its own-it could be chugging up to 200 extra gallons daily.
To maximize water savings, consider a dual-flush HET. The tank has two buttons that let you choose between a half flush and a full flush, depending on whether liquid or solid waste needs to go down. Caroma, a brand made in Australia (where dual-flush is mandatory), started selling these in the U.S. about a decade ago and offers nearly a dozen dual-flush lines.
Do some comparison shopping
The good news is that all this efficiency comes at a reasonable price-about $200 on average, no more than a conventional low-flow toilet. Keep in mind that price doesn’t always guarantee quality or correlate to MaP score. Before you make a purchase, check consumer reviews for specific models, noting track records for maintenance and common gripes that crop up about specific brands. Once you find a model you like, it’s easy to compare prices at Web sites such as pricegrabber.com (http://www.pricegrabber.com), shopzilla.com (http://www.shopzilla.com), and nextag.com (http://www.nextag.com) (be sure to factor in shipping and return policies). Certain features, such as elongated bowls and high-tech finishes like Toto’s SanaGloss, might add 20% to the price, but considering how long it will be until you buy your next toilet, that extra bit of ease and comfort is quickly amortized.
Laura Fisher Kaiser is a contributing editor to Interior Design magazine, a former editor at This Old House Magazine, and co-author of The Official eBay Guide. She recently cut her water bill in half by replacing all the water-guzzling toilets in her home with HETs.

Reprinted from HouseLogic (houselogic.com) with permission of the NATIONAL ASSOCIATION OF REALTORS®
Copyright 2009. All rights reserved
.

APPLIANCE BUYING GUIDE: RANGES

When deciding on a new range, here’s what you’ll need to know about features, style, price, and performance.

By: Douglas Trattner

Most ranges do a fine job of boiling water, baking cookies, and roasting the holiday bird. The major distinguishing factor will be whether the one you buy does so using gas or electricity. In general, a gas range with electronic ignition (instead of a gas-fired pilot light) can cost up to 50% less to operate than an electric model, depending on the price of utilities in your area.
Because there’s very little difference in energy consumption among ranges, these appliances aren’t required to bear EnergyGuide labels, nor are they included in the Energy Star (http://www.energystar.gov/) program. Other than by fuel type, homeowners typically select ranges based on budget, ease of cleaning, appearance, and performance.

Cost range: $350-$2,000 and up

Likely additional costs: Delivery, installation, haul away, gas line hookup, or electrical outlet installation if none exists

Average life span: 11-15 years

Gas or electric: “When a customer comes in for a new range, the first question I always ask is ‘Gas or electric?’” says Lenny Kaminski, sales manager at B & B Appliances, an 85-year-old retailer in Cleveland. Typically, it’s the home rather than the homeowner that will make this decision. Buyers who have a natural gas line in the kitchen will inevitably purchase a gas-powered range, while those without choose electric.

The one major exception is when a kitchen is undergoing a major remodel, allowing a homeowner to switch to gas with relative ease (assuming the house has a main line). Electric ranges typically require a dedicated 220-volt outlet.

Size: The standard width of a residential range is 30 inches. Those boasting side-by-side ovens and high-end “commercial-style” models can extend to 36, 40, and even 48 inches wide. However, smaller 20- and 24-inch models are available for kitchens short on space. The oven compartment on a standard-size range is 5 cubic feet, large enough to cook a 30-pound turkey.

Ease of cleaning: All but the least expensive electric ranges now feature smooth, ceramic glass cooktop designs rather than traditional coil burners, making them easy to clean. The jump from entry-level coil-burner electric ranges to those with smooth tops is roughly $150. Sealed-burner designs are present on almost all gas ranges and are relatively easy to clean.

Self-cleaning ovens are standard, appearing in models starting as low as $350.

Convection: One of the first major upgrades a buyer often makes, says Kaminski, is choosing an electric or gas range with convection heat. With convection, an internal fan circulates the hot air throughout the oven compartment, improving heat distribution and generally reducing cook times. Many home and professional cooks swear by the technology. Customers can count on spending an additional $200 to get the feature.

Burner quantity and type: The standard quantity of burners on a typical range is four, but buyers need not stop there. Stepping up to a mid-range gas or electric stove often comes with an additional fifth burner. Depending on the make and model, that burner could be an ultra-low “melting” burner or a centrally placed oval burner that accommodates griddle pans.

Likewise, a “bridge” burner is a smaller element located between two larger ones that, when on, creates one large heating element ideal for griddles and roasting pans. Five-burner ranges generally start around $800.

Burner performance: “BTUs absolutely affect performance, with some of the higher-powered burners boiling a pot of water in half the time of standard one,” says Kaminski. Both electric and gas burners have gotten more powerful over the years, offering increased performance at a relatively modest extra charge.

While 9,000 BTUs is standard, so-called “power” burners can climb up to 15,000 BTUs. Conversely, ultra-low “simmer” burners prevent stove-top scorching thanks to their scaled-back BTU output. Expect to pay around $200 extra for these well-equipped appliances.

Going pro: Avid home cooks–or those who follow current trends–often prefer the look and feel of a commercial-style range. Like the restaurant appliances they emulate, these residential versions boast ultra-high-powered burners, multiple large-capacity ovens, and convenient grill/griddle inserts.

Homeowners should expect to pay between $4,000 for a 30-inch unit up to $10,000 for a top-of-the-line 48-inch model. Likely additional expenses will include the installation of an equally high-powered exhaust hood and possibly some enhanced structural support.

Warming drawer or extra oven: Many contemporary ranges replace the conventional lower-level storage drawer with either a smaller second oven or a warming drawer. A variable-temperature warming drawer is ideal for keeping prepared food hot or warming chilly dinner plates. Expect models with this feature to start in the $1,000 range.

Second ovens, even the smaller ones that take the place of the storage drawer, can be very useful when cooking multiple items. Though shorter than the main compartment, the additional oven easily accommodates casseroles, cookie sheets, and platters. Configurations are available that position the smaller oven above or below the main compartment. Models start at $1,200.

Additional useful features: Temperature probes that monitor the progress of cooking items ensure the turkey will never again be overcooked and dry. Unfortunately, the technology doesn’t appear on many models under $1,300. Battery-powered countertop probes, in contrast, sell for only $30. Smooth-glide oven racks, porcelain-coated racks and grates, and halogen lighting all make the cooking process less of a chore. The question is whether the additional hundred dollars each is worth it.

Expected maintenance/repairs: Oven bulbs will need to be changed periodically. Coil-style electric burners often fail, but they’re easily replaced for around $30. Glow coils that ignite gas ovens can fail, requiring a $50 part plus labor. More costly is a cracked glass top on a smooth-top electric range, which can cost $250 to replace. Electric control panels, while reasonably reliable, can cost up to $250 plus labor to repair.

Douglas Trattner has covered household appliances and home improvement for the Cleveland Plain Dealer, DIYNetworks, and HGTV.com. During the 10-year stewardship of his 1925 Colonial, he’s upgraded almost every household appliance. After lengthy deliberation, he recently replaced an aging top-load washing machine with an energy-efficient front-load unit.

Reprinted from HouseLogic (houselogic.com) with permission of the NATIONAL ASSOCIATION OF REALTORS®
Copyright 2009. All rights reserved.

10 HOME FEATURES BUYERS WANT

Home designers and builders speaking at the recent International Builders Show in Las Vegas say that buyers are seeking cost-effective features and rejecting things that don’t have lasting value.

“It’s all about family togetherness – casual living, entertaining and flexible spaces,” says Carol Lavender, president of the Lavender Design Group in San Antonio.

Paul Cardis, CEO of Avid Ratings, which conducts an annual survey of buyer preferences, identified these must-haves in new homes:

  1. Large kitchens with islands
  2. Energy efficiency, including energy-efficient appliances, super insulation, and high-efficiency windows.
  3. Home offices
  4. Main-floor master suite
  5. Outdoor living space
  6. Ceiling fans
  7. Soaking tub in the master suite and/or an oversize shower with a seating area
  8. Stone and brick exteriors rather than stucco or vinyl
  9. Community walking paths and playgrounds
  10. Two-car garages, but three-car garages are even more desirable

Source: MarketWatch, Steve Kerch (01/30/2010)

JUST LISTED – AN UPDATED CLASSIC SOUTHGATE AREA HOME – 2316 Wordsworth Street

A classic Southgate area home with recent* updates.This spacious and well cared for home has 3 bedrooms,2.5 baths and wood floors throughout.The first floor living spaces are light and bright and are well suited for both formal and informal entertaining.The large 7,200 sf** lot provides a generous fully fenced backyard.The 2,253 sf** size does not include the bonus room located above the detached garage.The location with easy access to Medical Center,Rice U,Rice Village *=per seller **=per HCAD

List Price – $659,000                                                                                                                                                                     For More Information 2316 Wordsworth

A BELLAIRE SHOWCASE – 4611 BRAEBURN DRIVE

Tom Plant 4611 Braeburn

This light and bright home was 2003 Bellaire Showcase Home*.The gourmet kitchen,warm family room,formal room,formal dining room and custom swimming pool invite both formal and informal entertaining.This beautiful and sophisticated home also is a comfortable family retreat.The generous master bedroom is complemented by three additional bedrooms nestled around a large gameroom.This home must be seen to be truly appreciated. *per seller

List Price $1,149,000                                                                                        For More Information 4611 Braeburn

TEN INEXPENSIVE WAYS TO WOW BUYERS

Now is the time for home owners contemplating a spring sale to spruce up their properties in anticipation of what Mike Larson of Weiss Research calls a potentially vibrant home-selling season. “If you have been beating your head against a wall, this is going to feel a lot better,” he jokes.

Here are 10 cheap ways to make a property more attractive to shoppers.

Improve first impressions. Touch up the paint on the front door and other areas that buyers see first.
Clean up the landscaping. Trim the hedges and trees and plant some annuals in the flowerbeds.
Paint the interior. A coat of light yellow or cream with contrasting white woodwork looks fresh and clean.
Refurbish the floors. Buff the hardwoods. Install new carpets – or at least get them professionally cleaned.
Take care of the big problems. If the house needs a roof or the front stoop is crumbling, get them fixed.
Buy warranties. Putting appliances under warranty gives home buyers a secure feeling.
Improve energy efficiency. New windows or improved insulation tell a potential buyer the seller is on top of things plus they come with tax benefits.
Replace light fixtures. Updated fixtures, especially at the entrance way and in the foyer, create a good first impression.
Buy a stove. Home owners whose kitchen isn’t top of the line can jazz it up for a few hundred dollars by buying a new stove, which gives the room a fresh feel.
Tidy up the bathrooms. Get rid of mildew, replace caulking and replace stained sinks.

Source: U.S. News & World Report, Luke Mullins (01/21/2010)

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