Snapshot of September New Construction and Existing Home Sales

Hi Everyone,
   Welcome back to a beautiful Fall day with the potential for a substantial amount of pumpkin picking in the forecast.

   The September figures for both New Residential Construction and Existing Home Sales were released this week, and aside from fluctuations over the past few months, things look solid when compared side-by-side with the same time 12-months ago.

   New Residential Construction, as you might be aware, is broken down into 3 parts; Building Permits, Housing Starts, and Housing Completions. Housing Starts (Privately-owned housing starts), were up 15% from August, and 10.2% Above September 2010. This is very encouraging, especially for the Western Region of the U.S., which had figures that were substantially higher than the average (over both the 1-month and the 12-month periods). Building Permits and Housing Completions were also up over the longer-term, but not at the elevated levels as were the Housing Starts.

   Existing-Home Sales, which includes completed transactions for single-family, townhomes, condominiums and co-ops, dropped 3% from August, but are up over 11% from September 2010, per the National Association of Realtors® (NAR). In terms of regional variations, the long-haul big winner was the Midwest, checking in with in excess of a 17% jump in Existing Home Sales from September 2010 through September 2011.

   The chief economist for the NAR, Lawrence Yun, said that, “Existing-home sales have bounced around this year, staying relatively close to the current level in most months”, and he calls it "Irony" that the "affordability conditions have improved to historic highs and more creditworthy borrowers are trying to purchase homes", but, "the share of contract failures is double the level of September 2010", and he interpreted this as pointing to "an unfulfilled demand". Contract failures, incidentally, can result from a declined mortgage application, appraisal values below the negotiated price, issues resulting from the home inspection report, job loss, etc.

   In sum, Housing Starts up 10.2% from a year ago, coupled with a 11% increase in Existing-Home Sales from a year ago, would tend to point to improving market conditions. Do you agree? Do you disagree? Please explain - we'd love to hear your angle on these figures.

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Have a Great Weekend, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog: http://blogging.lease2buy.com
HomeRun Homes Websites: http://www.lease2buy.com and http://www.homerunhomes.com

TAGS: #NewConstruction #ExistingHomeSales #Residential #Housing #Building #Permits #singlefamily #cancellations #townhome #condo #Realtor #appraisal #NAR

Common Code Violations Found By Home Inspectors

Hi Folks,

   Glad to have you back here with me today.

   Let's face it, Home Inspectors do not have an easy job. They often enter homes of people that they have never even met before, and in some cases, are even met with a hostile welcome. Additionally, they need to be well-versed in all local codes, running the gamut of Electrical, Plumbing, Building/Structural, and more

   With that being said, today we will be taking a look at some of the most common code violations that Home Inspectors see on a consistent basis, which falls into 3 popular categories: Electrical, Plumbing, and Building/Structural.

   Chantay Bridges, of LA Real Estate Now, says that some of the electrical hazards that are most common usually occurs when there are, "too many wires plugged into one outlet or switch that can cause a fire." Sam DeBord, a Managing Broker and a Realtor, adds that a, "Lack of GFCI outlets in bathrooms and kitchens and other minor electrical issues like reverse-polarity on outlets." is quite common, and that this is, "an inexpensive repair that most home sellers would benefit from repairing for selling their home."

   Plumbing issues are also very common, and as Bridges says, they encompass, "dripping faucets, loose toilets, improper drainage and so forth." Sasha Tsakh, VP Sales and Marketing for a licensed plumbing company, mentions the, "Illegal plumbing work" that he finds, and says that, "It appears that many home owners are not aware that you need to have licensed contractors performing work. They have illegal gas lines and missing safety features. It's really sad to see how they've been taken advantage of, especially since there is no way to find these people once they've performed illegal work."

   The third issue is related to Building Code (including Structural Code). Bridges points to, "Illegal additions to properties", and she cites the following examples; "Someone added a room, altered the garage, etc. without a permit.". Paul S. Gilbertson, a former General Contractor, adds some issues that he has seen in regards to steps and railings, as well as handicapped ramps and landings. Additionally, Bridges also mentions that roofs tend to, "constantly make the list due to aging, rotting, wear and tear.", as well as, "Leaks" with improper ground drainage, ceiling stains from previous leakage, and rotted, molded, exposed untreated wood surfaces. Finally, she mentions some other issues, such as bars on windows without proper escape or emergency mechanisms, inoperable smoke detectors" (or smoke detectors that are not installed at all).

   Indeed, as mentioned at the start, being a Home Inspector is not easy. Hopefully some of these tips will help you prepare for any future home inspections, and save you time, money, and aggravation. Any comments? Did we miss any common issues?

Have a Great Day, and Happy Rent-to-Owning !
Regards,
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

Mixed Construction Numbers and Important News for Sellers

Hi Folks,

   Good Morning and I hope your week is going well.

   As of this morning, the October figures for New Residential Construction were released, which encompasses building permits, housing starts, and housing completions.

   To summarize, both privately-owned housing units authorized by building permits and the single-family authorizations were up from September. Privately-owned housing starts in October were down substantially (in excess of 11% !) from September, while single-family housing starts were down marginally. The last piece of data shows that privately-owned housing completions in October were below the September figures, while single-family housing completions were above the September numbers.

   Now, as the subject of this post mentioned - "Important News for Sellers":

   We are offering 50 Free Seller Ads (2-Month Ad duration) - so you can list your home for Sale or for Rent to Own (a $9.99 value). Is there a catch? Not at all. Let's just call it some early "Holiday Spirit".

   If you are selling a home, how can you grab your free Ad? Just CLICK HERE to send us the E-mail address that you will use to create your ad. We will then send you a user name, password, and the link to log in and place your Ad, add images, etc. This is a very rare opportunity, trust me, so make sure you stake your claim today...CLICK HERE.

Have a Great Day, and Happy Rent-to-Owning !
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com/

A Look Ahead and a Big Thank You

Hello All,
   Welcome back, and I hope you had a great weekend. If your lower back is in pain from collecting all the leaves from your property, raise your hand !

   First off, I want to thank you for reading and commenting on our post titled, "Private Money...Any Available For Real Estate Deals?". We have also received a lot of off-line feedback regarding this post, and to all of those individuals, you are quite welcome and I'm glad the post has been helpful.

   In the very near future, we look towards recapping some of our most highly-read posts, as well as some of our favorites and the favorites of our readers. In addition, we will hopefully be publishing an editorial calendar so you can hold us to task (and hold us to topic!).

   As a follow up to our post from Friday, titled, "The Building Trades Association (BTA) Accepts Our Membership", our official press release has been launched, and you can see it Here, or on our Press Page.

   Once again, a Big Thank You for your readership, helpful comments, and support. We look forward to raising the bar and delivering more pinpointed quality content. In closing, any comments? Please advise on the Blog or via E-mail.

Have a Great Week, and Happy Rent-to-Owning !
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com/

The Building Trades Association (BTA) Accepts Our Membership

Building Trades Association (BTA)

Hi Folks,

   Happy Friday to all of you !

   Today, we are excited to announce that we have been accepted as a member of the Building Trades Association, or BTA, which consists of member companies involved in all phases of the building and construction industries.

   BTA had invited us to submit a membership application, but I personally figured that since our segment of the industry is different than their regular types of members, that it might be a stretch. Ultimately (and fortunately), we were accepted, and I believe it is primarily due to the vast amount of Builders that list their homes on our website.

   Some of the other top brass over here were mentioning to me at our morning meeting that they think it's also about our longevity in the industry and the service we provide to the Building/Construction segment. Whatever the deciding factor(s) were, we are honored to be a part of this highly-respected trade association. (You can view our BTA Membership Certificate Here)

   On a different topic, on Wednesday the 17th, the New Residential Construction figures are being released, so we'll keep an eye on those numbers.

   Also - don't forget to sign up to receive our Blog via E-mail. It's very easy...On top of the upper right column (under, "SUBSCRIBE BY E-MAIL", just enter your E-mail address, and when you receive the confirmation E-mail, click the link. Super-easy !

May You have a Wonderful Weekend, and Happy Rent-to-Owning !
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

Mixed Message from The New Residential Construction Numbers

Hi All,
   It's time for the mid-week "Hello"...so, Hello.

   As the title suggests, the New Residential Construction Numbers were released yesterday, and it has arrows pointing all over the place. There are 3 main components: Building Permits, Housing Starts, and Housing Completions.

   In terms of Building Permits, for privately-owned units, the numbers came in below the August rate and well below September 2009. Single-Family authorizations were slightly above August. What can we tell from this component. Not much, just that the privately-owned side has taken a large hit.

   For the Housing Starts component, privately-owned starts were slightly above August and well above September 2009, while single-family housing starts were also well above September 2009.

   Finally, for Housing Completions, privately-owned housing completions were well above August, however, substantially below September 2009, while single-family housing completions were well above August. Within these figures, we can certainly see some positivity over the past month vs. the past year. However, I don't want to rain on any ones parade, but the HUD does add a disclaimer as follows, "In interpreting changes in the statistics in this release, note that month-to-month changes in seasonally adjusted statistics often show movements which may be irregular. It may take 3 months to establish an underlying trend for building permit authorizations, 3 months for total starts, and 5 months for total completions."

   OK, now onto a new topic, which is a response to a question from one of our readers, who has asked us for the locations of our other Social Media accounts. Since we are listed on quite a lot of them, I have listed the main ones for her (and your) convenience:

Twitter: http://twitter.com/homerunhomes
Facebook: http://www.facebook.com/homerunhomes
Facebook Page: http://www.facebook.com/lease2buy
LinkedIn: http://www.linkedin.com/in/homerunhomes
MySpace: http://www.myspace.com/lease2buy
Google Profile: http://www.google.com/profiles/lease2buycom
FriendFeed: http://friendfeed.com/homerunhomes
Plurk: http://www.plurk.com/homerunhomes
YouTube: http://youtube.com/user/renttoownleaseoption
ITunes: http://itunes.apple.com/WebObjects/MZStore.woa/wa/viewPodcast?id=373351426

Have a Great Week, and Happy Rent-to-Owning !!

Valuable Real Estate and Construction Industry Associations

Hi Folks,
   Friday has come upon us quite fast this week. The sun is shining and it's cool out. Fall is here. Hooray !

   Today, I'd like to discuss the mortar that holds the Real Estate and Construction industries together, and that would be the industry associations. These groups and organizations allow the professionals from all sectors and niches of the Real Estate and Construction industry to mingle amongst each other in order to create better opportunities that drive the housing market.

   The first one that I would like to mention is the Building Trades Association (BTA), which is, as they describe on their website, "made up of thousands of companies involved in all phases of the building and construction industries". Additionally, they have an invaluable Contractor Directory, which can prove as vital to anyone in our industry. They charge a nominal fee for full access to their services and registration.

   Jessie Sidhu, a multi family investor and Real Estate Broker, names the Apartment Association as a very valuable resource, stating that, "They keep you informed of all latest rules, regulations, laws (local, state & federal) pertaining to landlords and renters", as well as, "provide insights into the industry/current trends along with local vendor resources and more".

   Raj Persaud, a Sales Agent and Business Development Manager for Manhattist Inc, cites the National Real Estate Investors Association (NREIA), Multiple Listing Service (MLS), and the Real Estate Board of New York (REBNY), as his most valuable industry associations.

   Persaud says that the NREIA is a, "very sophisticated association but you can tell that they do very real work which has very practical implications for the industry", and that he thinks that, "they are the most future-forward in fore-seeing approaching challenges and mobilizing investors and professionals to address them".

   For the MLS, Persaud says that, "to just be a part of this service is incredibly convenient and instantly enhances your company to marketing 2.0. They make a search for any property in NYC with open listings very easy and at your fingertips". In discussing the REBNY, Persaud says that is serves as the, "real backbone to the property market here in NYC. Their unity of professionals brings real hope to the industry and they are always promoting better standards, including energy efficiency in buildings across the state. This is the kind of force we all need".

   Have we missed any associations that are valuable to you? Please comment and let us know.

Have a Great Weekend, and Happy Rent-to-Owning !

Homeowners who Built their Own Home, Part 3 of 3

Good Morning,


   Welcome back. Hope your weekend went well. Aside from some painfully stifling humidity here in the Northeast and some massive storms, it was nice to get together with some family (and to take shelter when the storms hit !)

   Today, we will be completing the final installment on our series on the Home-building process, and we will be hearing from some people who have gone through the process of building their own home. This will provide some valuable insight and tips from people who have already gone through the process, from start to finish.

   We spoke with a couple of homeowners who built their own home. One of the people that we spoke with and who built her own home in Washington State is K.S.Brooks, who is also an author, and we also spoke with Richard Keycon, who built his own home in East Central Alabama.

   Brooks suggests getting to know all of the "local building permit requirements before you buy your parcel and start your project.", as counties usually have different requirements, and that it is important to know the Building Department Inspectors and Coordinators.

   Keycon adds that once you identify the area, you need to find a land agent, and drive around to see every part of the property. They were looking for a very specific parcel, with about "20-30 acres, not many neighbors, a creek, maybe a pond or pond site, and a good building site." Once they settled on the property and purchased it, they asked their land agent and some locals to recommend a builder. Once they selected the builder, they agreed on the building fee, and moved forward from that point.

   The entire process involves a lot of work, as Brooks states, and she says that you should, "Be prepared to be at the house every day either working on or managing the project." and to "take responsibility" for it. She also said to never use the response, "whatever you think is best" when the builder ask you to make choices.

   Both Brooks and Keycon both agree that you need to do your research and comparison shop well in advance, since some items require lead-time for delivery, i.e appliances, counter tops, plumbing fixtures, lighting fixtures, windows, doors, etc.

   As far as environmental impact, Brooks summarizes it as, "Lean towards green, but don't be over-zealous.", and gives us this specific example, "We explored installing a Geo-thermal heating/cooling system for our SIP (structural insulated panel) home. Because SIPs are air tight and incredibly efficient, and with the low cost of hydro-powered electricity in Eastern Washington, it would have taken us 20 years to reap a return-on-investment for Geo-thermal. Instead, we went with a high-efficiency wood burning fireplace, with standard HVAC as a back-up. The result: our 1700 square foot 100% electrically-run house is generating electric bills under $60 per month."

   In closing, Brooks states that it is vital to make lists for everything (parcel, vendors, materials, etc.), and Keycon agrees and says that planning is key and that when searching for a builder, to remember that, "All builders are not created equal".

   We definitely hope that this series has been helpful to you in one or many ways. Remember that there are many builders who build homes and will then Rent them with an Option to Buy (Rent to Own Homes), so it requires a little bit of homework on your end to find these builders.

   If you have any question, we area always available to respond to them. We will be back to our regular Blog posts on Wednesday, since we have a lot of interesting information and topics to cover.

Have a Great Week, and Happy Rent-to-Owning !

Examining the Home Building Process, Part 1

Good Morning,


   At the request of our readers, we are beginning a 3-part series on the Home-Building process. We always receive a lot of questions about how the process actually works, and we have made contact with some solid resources to bring you some pretty good information that should be incredibly useful to you.

   David Spetrino of Plantation Building Corp (in Wilmington, North Carolina), uses a 10-step process that brings buyers from start to finish. The first step involves meeting their potential customer to identify their wants and needs (this is where you describe your custom dream home and the ideal “move in date,”). They need to know, for example, if you enjoy entertaining in your home, if this is a primary home or a vacation home, and if you would you describe your ideal home as formal, casual, or a hybrid of both styles. They will also ask you if you have any “green” requirements (environmentally-friendly)

   Next, they will discuss where the home will be located. If you have a lot ("home site") already, that's fine, and if you provide them with the address or community of choice, they will do the research regarding setbacks, zoning, architectural standards, etc. After this, they move on to the professional service agreement, estimate preparation (where they collect bids from their trade contractors and vendors), and ultimately, the construction contract (which involves the construction schedule and your financing). Spetrino makes it a point to note that, "the bank that provides the construction financing may not always be the bank that retains your long term mortgage. You have likely provided your lender with tax returns and related financials. Your bank will want us to supply them with a copy of the construction contract, set of construction drawings, specifications and the budget."

   During this process, the General Contractor comes into play, and there are some pointers provided by Arlene Battishill, a licensed general contractor in Los Angeles. Battishill notes that any proposed home site must be zoned for residential use, and you will need an accurate legal description of the parcel, soil testing, and a structural engineer’s review of the architectural plans to determine if any special reinforcement will be required. Once a licensed general contractor (“GC”) is hired, cost estimates can be made, and once acceptable, the architect or general contractor will submit the architectural plans to the local government building department for evaluation. Once all changes are made and the building permit fees are paid, construction can begin.

   From this point on, Spetrino's company works out the full details, and then begins construction. They provide, "regular updates, photos, and twice monthly, a ‘cost report’ that tracks budget and schedule." Over the course of construction, sometimes changes need to be done, and these requests go into a written format, officially known as the ‘change order.’ Once the "Big Day" arrives, a thorough "inspection and orientation of your new home" is completed. After one month, they schedule a follow up walk through to make sure that you are completely happy, and they also schedule a one year walk through.

   Battishill notes some of the costs of the process, for example, purchasing the land, the fees paid to all of the required consultants, fees to the local government and then the cost of construction. She notes that financing should be obtained well in advance of construction, and to assume that you will need 25-50% more money than the budget calls for to ensure successful completion, as cost tends to overrun in the construction of new homes.

   Please join us on Friday for part two in this series, where we have some additional pointers and points of view from a Property Manager and an Interior Designer.

   Have a Great Day, and Happy Rent-to-Owning !

New Residential Construction, Loans, Referrals and Affiliates, Free Book...

Hi Everyone,

A Happy Friday to All.

Things have been simmering here at HomeRun Homes, with traffic to our website at all-time highs, and we are proud to say that we have received the most "Thank You" E-mails from our customers within one week since we began doing business 8 years ago.

OK, some important news coming out next week:

Tuesday the 18th brings the newest figures for New Residential Construction - Building Permits, Housing Starts, and Housing Completions

Friday the 21st brings the Loan Performance Housing Price Index


These are both very important numbers. The announcement of New Construction, coupled with Housing Prices, should paint a better picture of where things have been over the past few months, and if they are positive, they can hopefully continue throughout the summer and beyond.

Now, we usually like to throw some exciting promo on the table at least once a week, so we are letting everyone know that we offer a generous Referral and Affiliate program. If you are interested in learning more, please leave comments here, or you can send an E-mail to homebuyer@lease2buy.com with the subject line of "Referrals/Affiliates", and we'll send you more details. It's a great way to earn some extra money and some free months on your Ads.

As a final note, we are responding to a question from one of the buyers who has received a large amount of responses from sellers this past week. Our best advice is to make a document or spreadsheet with the name and contact info of each seller, along with the details (prices, etc) of their homes. Once you have it all down visually, it's much easier for you to make a decision and make further reminder notes once you have viewed their properties. Good luck, and we hope you found your new castle !

Remember, we are offering a Free Copy of "Secrets of Rent to Own", when you purchase an Ad of 3-Months or longer.

If you're Looking for a Rent to Own Home, you can get your very own "Home Wanted" Ad at http://www.lease2buy.com/prospectivetenants.php

If you're Selling a Rent to Own Home, you can get your very own "Home Available" Ad at http://www.lease2buy.com/prospectivesellers.php


Have a Great Weekend, and Happy Rent-to-Owning !!

Helpful Tips when doing your Walk-through...and More..

Hi All,
We hope you had an absolutely fantastic weekend, and we welcome you back.

A few interesting items happening today and this week:

Since the Spring is here for most of us, our market tends to pick up (we hope!), and buyers start doing their walk-throughs of properties that they are closing on. This brings me to the "Tip of the Day":
When doing a walk-through of a property, make sure you bring a small electrical outlet tester, as well as a phone jack tester.
These are two very inexpensive items that can save you time and money !
I've been burned on that a few times and it is quite irritating, so please learn from my silly mistakes.

OK, now, for HomeRun Homes, we have been compacting our database of properties and buyers, since it was a very busy February & March. Basically, to spare you the technical jargon, we compressed the data so that the site works faster.
Additionally, we have edited our YouTube Video for Rent to Own Homes over the past few days. Please take a glance at it here: http://www.youtube.com/watch?v=NlOZxvY2gg4

Please also note: You can Follow our Blog and be notified of new posts by clicking on the "Follow" Button on the Right-hand side of the page - we promise that we will not bore you or let you down !

Finally, New Residential Construction numbers are coming out this Friday, the 16th. These numbers, as you can imagine, are very important for the housing market and the Economy, since this takes into account Building Permits, Housing Starts, and Housing Completions. For more information and details on this upcoming Report, here is the link: http://www.census.gov/const/www/newresconstindex.html

Thank you.
Have a Great Week and Happy Rent-to-Owning !!