20% Of Home Buyers Are Single Women

Since the 1990s, single women have purchased homes at about double the rate of single men.

On a recent sale, Hartford, Conn.-area real estate agent Maria Hagan of Prudential Connecticut Realty was dealing with a single-female client who had just sold her condominium and was looking to buy another. The client had a hard time finding anything she liked, until one day she drove past a single-family home on the way to visit her brother.

The property was a two-bedroom, 1,200-square-foot ranch. On her first visit to the home, Hagan's client decided to buy it. "The client looked back on why she sold her condo," Hagan explains, "and one of the reasons was lack of privacy." The single-family home afforded the client that sense of non-intrusion she was seeking. Post continues after video.

Besides increased privacy, there were other reasons the home appealed to Hagan's client. First, it was closer to her brother's home, and the home had a basement where her niece and nephew could play when they came to be baby-sat. Also, the home's second bedroom could be used as an office. Without plans to start a family of her own anytime soon, the client felt the home would serve her well for a long time.

• Compare mortgage rates

Since the 1990s, single women have purchased homes at about double the rate of single men, reports Walter Molony, a spokesman for the National Association of Realtors. According to the NAR's 2010 data, about 20% of homebuyers were single women compared with just 12% single men.

Women have caught up
Until the early 1980s, single women were at a distinct disadvantage in the marketplace due to lack of credit, Molony notes. "But once that improved, you saw single women get up to their natural marketplace share, which is roughly one out of five buyers."

Asked why more single women buy homes than single men, Molony guesses two, noneconomic reasons: Women like to "nest," or create their own living space, while men often don't get serious about real estate "until they meet the right woman."

To that point, several male first-time homebuyers we spoke with explained that their homebuying decisions weren't made in earnest until they were either married or engaged.

According to a 2006 study by Harvard University's Joint Center for Housing Studies, though married couples accounted for the majority of homebuyers, their share in the marketplace had been shrinking for the past 50 years. The Harvard study cited numerous reasons for this diminishing trend, including:

• More unmarried women in the population than in the past.
• The average age when a woman first marries increased as more women sought education and career before committing to a relationship.
• Fewer young-adult women chose to live with parents and instead moved out on their own.

Who are they and what are they buying?
The median age and household income of the single-woman homebuyer, according to the NAR, was 41 and $50,600, respectively, last year. The NAR's data show that 62% of single women bought single-family residences, compared with 15% for townhomes and 15% for condominiums. The homes purchased were about 1,450 square feet on average.

According to the NAR, the most stated reason a single woman buys a home is simply a "desire to own." As was the case with Hagan's client, living closer to friends and family was another reason. Yet equally important to a single, female homebuyer's decision was the home's affordability, a recent change in family life, and homebuying incentives like the homebuyer tax credit.

• Calculator: How much house can you afford?

Those homebuyers who do go the condominium route have their own important reasons. Samantha Thomas (whose name has been changed for this article), a 29-year-old hair stylist, recently bought a condominium in a Newport Beach, Calif., mid-rise. "I chose the condominium because I am busy and there are people here who do the upkeep, landscaping, pool, etc., and since I don't have children this was simpler," she explains.

The location and security were also important issues. "I'm five miles from work, five miles from the beach and my family is close by," she adds. The condominium has a front-desk person 24/7, all packages are left at the front desk, and the parking garage is secure as well, Thomas says.

Hagan's single-women clients tend to be young and generally opt for a community property, townhome or condominium. But she also gets a fair number of older, single-women clients, who tend to buy into communities where the exterior work is taken care of by an association and the homes aren't attached.

Many of these women are divorcees or widows and have come from single-family homes. Says Hagan, "They like their privacy and they often have the companionship of an animal, which is a problem at some condominiums."

More from HSH.com and MSN Money:

• Why Japanese meltdown means lower U.S. mortgage rates
• What will be my monthly mortgage payments?
• Do you earn enough to buy a home in your city?
• The 15-year vs. 30-year mortgage debate
• Are you crazy to buy a home now?
• The rising costs of renting

SOURCE: Steve Bergsman at partner site HSH.com

10 Pieces Of Paper You Must Have To Buy Or Sell A Home

Home buyers and -sellers alike often bristle with anticipatory irritation at the mere thought of all the paperwork they expect they’ll have to come up with to do their transaction, above and beyond the basic loan application, contract, disclosures and closing docs. And these worries start way in advance; it’s as though, before they even start visiting open houses, buyers begin to visualize - and dread - spending hours upon hours in the dank catacombs of the Vatican (à la Da Vinci Code) combing through ancient files, seeking some rare and precious artifact documenting their childhood dental history or genealogy.

In some respects, this vision of the experience of obtaining a home loan might not be far off - there are oodles of hoops through which to jump and, occasionally, the loan underwriter requests something sort of bizarre. But more commonly, there’s a pretty finite universe of documents you’ll really need to scrounge up to get your home bought - or sold. Here they are:

1. ID (e.g., driver’s license, state-issued ID, passport).  Who must produce it?  Buyers and sellers.  Why?  Uh, hello!?!  Lender wants to know that you are who you say you are, buyers, and the title insurance company wants to make sure, sellers, that you actually have the right to sell the home.  Funny enough, this commonly goes unrequested until you get to the closing table, when the notary requests to see it before signing, but some mortgage brokers and even some real estate brokers and agents may ask to see it earlier on.
2. Paycheck Stubs.  Who must produce it?  Any buyer financing their purchase with a mortgage.  Sellers, usually only in the case of a short sale.  Why? Buyers’ purchase price ranges are determined, in part, by their income. And short sellers have to prove an economic hardship.
3. Two months’ bank account statements. Who must produce it?  Buyers getting financing; sellers selling short. Why? Buyers’ lenders now require proof of regular income and proof that the down payment money is your own.  Short sellers?  It’s all about the hardship.
4. Two years’ W-2 forms or tax returns. Who must produce it?  Mortgage-seeking buyers and short selling sellers. Why? Banks want to see a stable, long-term income. They also limit you to claiming as income the amount on which you pay taxes (attn: all business owners!). And in short sales, again, they want documentation of every single facet of your finances.
5. Updated everything. Who must produce it? Buyer/mortgage applicants. Why? Because things change, and because the time period between the first loan application and closing can be many months - even years! - on today’s market. During the time between contract and closing it’s not at all unusual for underwriters to demand buyers produce updated mortgage statements, checks stubs, and such - and its quite common for them to call your office the day before closing to request a last minute verification of employment!
6. Quitclaim deed. Who must produce it?  Married buyers purchasing homes they plan to own as separate property.  Married sellers selling homes that they own separately, or joint owners selling their interests separately.  Why? With the Quitclaim Deed, the other spouse or owner signs any and all interests they even might have had in the property over the the selling owner, making it possible for the title insurer to guarantee clear, undisputed title is being transferred in the sale.
7. Divorce decree.  Who must produce it? Buyers and sellers who need to document their solo status or the property-splitting terms of their divorce. Why? Again, to ensure that the seller has the right to sell.  Recently single buyers might need to prove that they shouldn’t be held to account for their ex’s separate debts or credit report dings.
8. Gift letters.  Who must produce it? Buyers using gift money toward their down payment. Why? The bank wants to be sure the gift came from a relative, and is their own money to give.  They also want the relative to confirm in writing that it’s a gift, not a loan - a loan would need to be factored into your debt load.
9. Compliance certificates. Who must produce it? Usually sellers, but sometimes buyers, by contract. Why? Some local governments require various condition requirements be met before the property is transferred, like some cities which require a sewer line be video scoped and repaired, cities which require a checklist of items be met before a certificate of occupancy be issued (usually relevant to brand new and really old homes, the latter of which are often subject to lead paint concerns) and energy conservation ordinances which require low-flow toilets and shower heads to be installed. Ask your real estate pro for advice about which, if any, such ordinances apply in your area.
10. Mortgage statements. Who must produce it?  Any seller with a mortgage. Why? the escrow holder or title company will need to use them to order payoff demands from any mortgage holder who has to get paid before the property’s title can be transferred.

By no means is this an exhaustive list.  Agents: what documents do you see buyers and sellers struggle to scrounge up during their home buying transactions?


SOURCE: Tara @ TRULIA

CASH IS KING

Cash Is King in Today's Distressed Marketplace

For many homebuyers, mortgage financing is hard to come by these days. Lenders have tightened up credit requirements in an about-face from the lax lending of pre-crisis days that put people into mortgages they couldn’t afford and fueled record-high delinquencies.

Evidence of constricted mortgage credit was highlighted in the latest HousingPulse report from Campbell Surveys and Inside Mortgage Finance as cash transactions set a new record, accounting for 33.7 percent of home purchases in February.

A separate study conducted by the National Association of Realtors (NAR) shows the same trend.NAR also found that all-cash sales were a record 33 percent in February. By comparison, they were 27 percent in February 2010, according to NAR’s historical data.

The HousingPulse report notes that the increase in cash purchases last month paralleled a rise in activity among investors, who for the most part have their sights set on distressed properties that can be scooped up at a discount.

Investors bought 23.5 percent of the homes sold in February, up from 19.9 percent just two months earlier, according to the industry survey. Real estate agents participating in the HousingPulse survey of February transactions confirmed the surge in investors.

“We are seeing investors come back into the market. One investor told me that one house he wanted came on Wednesday p.m and had nine offers by Thursday a.m.,” stated an agent in New Jersey.

“There are a number of investors and businesses buying up the short sale and REO properties and renovating them and then selling them as traditional sales,” reported an agent from Arizona.

NAR’s February report on existing-home sales noted that the median sales price on previously owned homes dropped 5.2 percent in February compared to the price points of a year earlier to hit a nine-year low.

The trade group attributed the decline to a larger number of distressed properties in the sales pool – 39 percent in February – thanks to investors with cash in their hands snapping up homes at bargain prices.

There are conflicting views within the industry as to the effect increased investor activity in the distressed property marketplace has on communities struggling to recover from the housing crisis. A separate article here on DSNews.com examines both sides of the debate over whether property investors are solving or contributing to neighborhood blight.

While investor appetite is strong for REOs and short sales that carry a discount price tag, the selection of properties that fall into this class has contracted somewhat.

The HousingPulse Distressed Property Index (DPI) registered a slightly lower reading in February than in January, marking its first decline since last fall.

The report notes that the drop was not likely the result of a healing housing market, rather is appears to be linked to delays in the listing and sale of distressed properties as mortgage servicers continued to deal with legal and regulatory fallout surrounding title and paperwork issues following the robo-signing mess.

The HousingPulse survey polls over 3,000 real estate agents from across the country each month to provide insight into home sales and mortgage usage patterns.

The survey also found that average transactions per real estate agent fell from 2.1 in January to 1.7 in February – a sign the home sales are slipping at a time of the year when they typically begin to increase. The report notes this may be an indicator that the spring buying season will start with a deficit.

SOURCE: DSNEWS.COM

Overpricing = Appraisal Backlash + Killed Deals

Sales of Previously Owned Homes Slump 9.6%

Existing-home sales fell in February following three straight monthly increases, according to data released by the National Association of Realtors (NAR) Monday.

Existing-home sales, which are completed transactions that include single-family, townhomes, condominiums, and co-ops, dropped 9.6 percent to an annual rate of 4.88 million in February from an upwardly revised 5.40 million in January. February’s reading is 2.8 percent below the 5.02 million pace for the same period last year.

The latest figures came in much lower than analysts were expecting. Lawrence Yun, NAR’s chief economist says current market conditions make for an uneven recovery.

“[H]ome sales are being constrained by the twin problems of unnecessarily tight credit and a measurable level of contract cancellations from some appraisals not supporting prices negotiated between buyers and sellers,” Yun said. “This tug and pull is causing a gradual but uneven recovery.”

Still, Yun notes that existing-home sales remain 26.4 percent above the cyclical low seen last July.

SOURCE: DSNEWS.COM

New Rules for First-Time Home Buyers

Without a house to sell , first-time home buyers have had a field day in the depressed housing market. Until recently, anyway. A series of new rules, regulations and policies have changed the landscape, making buying that new home harder and more expensive.
Not long ago, first-time buyers accounted for 40% of home sales. Now they're down to 29% and falling, experts say, as first-time buyers confront a steady accumulation of rising fees, costs, and rates. This month, fees on most new mortgages will rise by up to 0.50%. In April, fees on small-down-payment mortgages, a first-time buyer favorite, will spike. Meanwhile, more lenders are requiring larger down payments, and new proposals from the Obama administration call for mortgages to become more expensive and limited in size.

More tips for buyers and sellers:

• 10 Things Your Real Estate Broker Won't Say
• The Hidden Costs of Renting
• Why the Housing Crash May End in 2011

The new fees and higher barriers to entry are all a response to the sweeping mortgage losses of the last several years. Banks and other lenders lost billions of dollars on subprime and other risky mortgages, and some must now buy back bad loans they sold to Fannie Mae and Freddie Mac. To cover those losses, banks and the agencies are raising fees on new mortgages, says Keith Gumbinger, a vice president at HSH Associates, which tracks the mortgage market. Also, from the perspective of lenders and the government, making it harder and more expensive to get a mortgage will deter or cull the riskiest borrowers and minimize defaults.
But taken in total, all this reform means the window of opportunity for first-time buyers may be closing. Home prices still seem to be near the bottom, mortgages are still cheap and, though they have increased over the past five months, interest rates are still low. Of course, there are still reasons to wait to buy: The changes to the mortgage market could depress home sales and prices further. But for those who don't want to wait, here are the new rules for first-time home buyers.
New rule: Put more money down.

No Money Down? Not Anymore
As housing prices drop, mortgage lenders are requiring larger downpayments on homes. Kelsey Hubbard talks to WSJ's Mitra Kalita about what the changes mean for consumers. ( Watch video )

Not because you'll have to -- it's still possible to make a down payment of less than 5% -- but because you want to. Insurance fees on the government-insured mortgages that require just 3.5% down have doubled in seven months, to up to 1.15% (as of April). On a 30-year, $300,000 mortgage, a buyer would pay $30,000 more in fees than if he had signed up for the mortgage in September. Also, between new lender requirements and cash-flush buyers, down payments have been rising since the last half of 2010 and now average 34% of the purchase price, according to the latest data by mortgage-data firm CoreLogic.
It's unlikely that a first-time home buyer can save so much money for a down payment, especially in high-priced markets like New York and San Francisco, says Cameron Findlay, chief economist at LendingTree.com, which tracks mortgage rates. Instead, first timers might need to consider alternative options to get cash , like grants offered by individual states. And most lenders still permit buyers to use cash gifts from family with a notarized letter from the donor stating that the money doesn't need to be paid back, says Gumbinger. Or, a buyer who's open to co-owning a home can sign up for a mortgage with a co-applicant who has extra cash to put down but wants a stake in the property.
New rule: Stay for a decade.
Not only are the days of flip-and-move long gone, but buying a house has become truly a long-term investment. In many cases, 10 years long, says Paul Bishop, vice president of research at the National Association of Realtors -- if buyers are hoping to make a profit or just break even. As mortgage fees rise, buyers have to recoup larger costs, which takes a longer time. Also, experts predict very slow growth in home prices over the next 10 years, which means it will take a long time before sellers can make a profit, says Findlay. Of course, buying a home may still make financial sense, but buyers' focus should shift from rising prices to building equity.
For first-time buyers, this means avoiding homes that require renovations, if it's possible -- it will only take longer to recoup the costs of a new kitchen or deck, says Findlay. Instead, stick to a home that requires few major projects, which builds equity with the passing of time. Also, a bigger down payment can cushion the blow for buyers who end up having to sell in a hurry, because it lessens the chances of owing more money on the home than it's worth should values drop.
New rule: Brace for competition.
Following the housing downturn, desperate sellers were often eager to accept an offer – any offer. But now, first-time buyers looking for discounted prices may be disappointed. Over the past few months, investors, international buyers, and downsizing retirees have made a noticeable impact on the market, because they're paying with cash. In January, about 32% of purchases were made with all cash, up from 26% a year ago, according to the NAR. Sellers are often more inclined to accept these offers since they don't need to wait for a lender to approve financing, says Karen Trainor, managing broker at Weichert Realtors in Ashburn, Va.
To stand out, first-time buyers can present an offer with few contingencies, she says. At this point, given growing competition among buyers, there's little reason for a seller to work with someone who requests repairs or asks them to cover the closing costs. But offers from buyers who ask strictly for a home inspection and appraisal – two requirements they shouldn't give up – are more likely to get accepted than all-cash bids with a long list of requirements.

Read more: New Rules for First-Time Home Buyers - SmartMoney.com http://www.smartmoney.com/personal-finance/real-estate/new-rules-for-firsttime-home-buyers-1299539050817/#ixzz1GUC7sOro

BYE-BYE GATSBY

Long Island "Gatsby" manse to be razed

March 08, 2011 08:30AM

Lands End in Sands Point Village

The Long Island estate that many F. Scott Fitzgerald devotees believe was the inspiration for Daisy Buchanan's home in "The Great Gatsby," may soon be borne back ceaselessly into the past. According to the Post, the current owners of the so-called Lands End mansion plan to demolish the 25-room colonial home in Sands Point Village in order to make way for a five-lot subdivision, upon which they'd build as many $10 million custom homes. The aging mansion, which sits above the Long Island Sound, belongs to father-son pair Bert and David Brodsky, who purchased it for $17.5 million in 2004 with the intent of turning the property into a family compound. But they soon found that the main house was in disrepair, and cast doubt on its Fitzgerald ties. "We did a lot of research on its history and there is really no evidence that Fitzgerald was even ever there," David Brodsky said of the mansion. "To be honest with you there isn't anything really special about it."  

TAGS: BRET BRODSKY DAVID BRODSKY F. SCOTT FITZGERALD GREAT GATSBY LANDS ENDSOURCE: NY POST

Could The Worst Be Over??? Finally....

Foreclosure Activity Sinks to Three-Year Low

New data from RealtyTrac shows that foreclosure filings nationwide dropped 14 percent between January and February, as overall activity last month sunk to its lowest level since February of 2008.

RealtyTrac says total foreclosure filings – including default notices, scheduled auctions, and bank repossessions – were reported on 225,101 properties in February, a 27 percent decrease from a year earlier and the biggest year-over-year decline since the company began issuing its report in 2005.

One in every 577 U.S. housing units received a foreclosure filing last month, as default notices, auction announcements, and new REOs all hit their lowest readings in more than a year and a half in RealtyTrac’s study.

On the surface, all good news for an industry trying to get a handle on delinquencies and property repossessions, but RealtyTrac says the sharp decline is likely the result of processing delays following last fall’s robo-signing problems.

“Foreclosure activity dropped to a 36-month low in February as allegations of improper foreclosure processing continued to dog the mortgage servicing industry and disrupt court dockets,” said James Saccacio, RealtyTrac’s

CEO. “[T]he bottom line is that the industry is in the midst of a major overhaul that has severely restricted its capacity to process foreclosures.”

Saccacio added, “We expect to see the numbers bounce back, but…monthly volume may never return to its peak in March 2010 of more than 367,000 properties receiving foreclosure filings.”

A total of 63,165 U.S. properties received default notices (NOD, LIS) for the first time in February. Foreclosure auctions (NTS, NFS) were scheduled for the first time on 97,293 homes last month, while lenders completed foreclosure on 64,643 properties.

Nevada posted the highest state foreclosure rate for the 50th straight month with one in every 119 homes there receiving a foreclosure filing during the month, despite a 22 percent decrease in the state’s overall activity.

Arizona claimed the nation’s second highest foreclosure rate at one in every 178 housing units with a foreclosure filing. California took the No. 3 spot with a foreclosure rate of one in every 239 homes.

One in every 273 Utah housing units had a foreclosure filing in February, the nation’s fourth highest foreclosure rate. Idaho had one in every 298 of its homes receive a filing, giving it the nation’s fifth highest rate.

Other states with foreclosure rates ranking among the top 10 in February were Georgia, Michigan, Florida, Colorado, and Hawaii.

Drilling down to the metro level, RealtyTrac says for the second month in a row, no Florida cities posted foreclosure rates in the top 20. That’s in stark contrast to 2010, when the state accounted for nine of the top 20 metro foreclosure rates.

Nevada, California, and Arizona cities, on the other hand, continued to dominate RealtyTrac’s metro list, accounting for all top 10 metro foreclosure rates and 15 of the top 20 metro foreclosure rates in February.

SOURCE: DSNEWS.COM

5 Tax Tips, Tricks and Traps for Homeowners

Ask a roomful of homeowners what's so great about owning versus renting, and you'll hear them holler in unison: "the tax deductions!" And it's true – homeowners who itemize their taxes are able to deduct 100% of their mortgage interest and property taxes from their income tax returns.

That means that if you're in a 28% tax bracket, Uncle Sam effectively subsidizes about a third of your borrowing costs or more, making your home more affordable or allowing you to buy a larger home than you could have otherwise. Also, big chunks of your closing costs are tax deductible, and hundreds of thousands of dollars of any profit (or capital gains) that you realize when you sell your home are exempt from income taxes.

At tax time, it's critical to know what you're entitled to, so you can claim it. So, here are five essential need-to-knows about home-related income tax tips to help you get the most tax-reducing bang out of your home-owning buck – and to avoid hefty home ownership-related tax traps.

1. You Have to Itemize Your Return to Claim Your Deductions

During the recent debate on Capitol Hill about whether the mortgage interest deduction should be eliminated (it won't be, not anytime soon), it came out that nearly 40% of homeowners lose out on their major tax advantages every year when they fail to itemize their income taxes. If you own a home and otherwise have a fairly simple return, it might be tempting just to take the standard deduction – and if your mortgage, property taxes and income are low enough, the standard deduction might outweigh your homeowners' deductions. But you'll never know if you're losing out on the tax advantages of itemizing unless you try; before you grab a pen and start filling in that 1040-EZ grab those forms from your mortgage company and answer the questions on tax software like TurboTax, which will automatically do the math on whether itemizing or taking the standard deduction will result in the lowest tax bill – or the highest tax refund – for you.

2. Plan Ahead and Be Strategic When Taking a Home Office Deduction

According to the Small Business Administration, the average home office deduction is $3,686 – multiply that by your tax bracket – 15%, 20%, 30% or whatever it is, and that's what you'll save on your taxes by writing off your home office. Know, though, that the space you designate as your home office cannot be exempted from capital gains tax when you sell your home later. The $250,000 (single)/ $500,000 (married filing jointly) income tax exemption for capital gains is only good on your personal residence, after all – not including any space in your home you've claimed as your tax-advantaged office. If you foresee selling your home for much more than you bought it in the future, near or far, discuss this with your tax preparer to see if the few hundred bucks you save is worth the capital gains complication later.

3. Tax Relief for Loan Modifications, Short Sales and Foreclosures Is Only Around Through 2012

While the long-term housing outlook is beginning to look up, 2011 is projected to be the peak year for foreclosures during this market cycle. Distressed homeowners who are on the brink of a short sale, loan modification or foreclosure should be aware that normally, any mortgage balance that is wiped out by one of these outcomes is taxed as what the IRS calls Cancellation of Debt Income, or CODI.

Under the Mortgage Debt Forgiveness Relief Act of 2007, the IRS is currently not charging income taxes on CODI incurred through a loan mod, short sale or foreclosure on most primary residences through 2012. But right now, banks are taking many months, or even years, to work out mortgages in all of these ways; the average foreclosure in New York state right now occurs only after 22 months of missed mortgage payments. If you foresee any of these outcomes in your future, don't put things off. Do what you can to get to closure on your distressed home and loan, ASAP, while you won't have income taxes to add as the insult on top of your significant housing injury. 

4. Project the Income Tax Consequences of a Refinance or Property Tax Appeal

Homeowners everywhere are working on applying for a lower property tax bill on the basis of the last few years' decline in their home's value. Those who have equity have flocked en masse to refinance their 7% home loans into the 4% to 5% rates of the last few months. These strategies offer some of the heftiest household savings out there for the corresponding investment in time and money they take. But here's a caveat for savvy homeowners who slash these costs: remember that property taxes and mortgage interest, the very costs you're minimizing, are also the basis for the major tax benefits of being a homeowner. So plan ahead for your income tax deductions to go down along with your taxes and interest.

5. Don't Forget Those Closing Costs
If you bought or refinanced your home in 2010, you may be so focused on your mortgage interest and property tax deductions that you forget all about your closing costs. Any origination fees or discount points that were paid to your mortgage lender at closing are tax deductible on your 2010 return, get this – even if the seller paid your closing costs. If you can't figure out exactly what you paid, look for your HUD-1 settlement statement, that legal sized paper full of line item credits and debits that you should have received from your escrow provider or title attorney at, or just after, closing. Can't find it? Drop your real estate agent or mortgage broker an email; they can usually get a copy to you quickly.

Note: This post first appeared on WalletPop.com on 2.28.2011.