Unstaged Rooms Hamper a Home Sale

Unstaged Rooms Hamper a Home Sale

Sellers may be shooting themselves in the foot when they leave an empty, dark, or cluttered room unstaged, according to a recent realtor.com® article. Empty rooms, for example, can “kill a home sale, especially if the other rooms are furnished,” says Allison Bethell of FitSmallBusiness.com. Imperfections stand out more in an empty room, and the absence of furnishings could make it more difficult for buyers to visualize how to use the space.

A poorly lit room also can give the entire house a darker vibe, adds Desare Kohn-Laski, broker-owner of Skye Louis Realty in Coconut Creek, Fla. Instead, open curtains, consider painting the walls a light color, and add plants or a mirror to brighten the look.

The cluttered playroom is another top offender, real estate agents say. “If a playroom looks like a cluttered mess, buyers get the impression that the current residents aren’t clean,” says Kohn-Laski. Sellers should erase crayon and other marks on walls, as well as wipe fingerprints off doors and windows. Also, ensure the room isn’t stuffed with toys; a room that is too full can appear smaller.

The “creepy basement” may also be giving off the wrong type of vibe. Sarah Pickens with RE/MAX Advantage Plus in Blaine, Minn., recalls showing a home to buyers where the basement was an empty, all-cement room with no windows. “The buyer was so creeped out that we left the property,” Pickens says. “And he said he would never purchase the house because of that room.” Realtor.com® suggests “de-creeping” a basement by staging and brightening any windowless rooms.

Also, make sure a cluttered closet isn’t making buyers want to bolt. Teri Connors, an associate broker at Coldwell Banker M&D Good Life in Patchogue, N.Y., says overstuffed closets can make buyers think there’s not enough storage space in a home. She recommends removing at least two-thirds of the clothes in the closets to give the illusion that there’s plenty of space.

Source: “The One Room That’ll Make Buyers Bail, Even If They Love the House,” realtor.com® (March 28, 2018)

Facebook Accused of Allowing Discrimination in Housing Ads

Facebook Accused of Allowing Discrimination in Housing Ads

Several fair housing organizations sued Facebook on Tuesday, accusing the social media giant of allowing landlords and brokers to discriminate based on gender and family status on its advertising platform. They argue that advertisers could use the personal data of Facebook users to then target ads that could exclude certain populations from viewing them.

The National Fair Housing Alliance and three other housing groups filed the lawsuit, alleging that Facebook’s advertising platform violates the Fair Housing Act, which prohibits discrimination “based on race, color, religion, sex, handicap, familial status, or national origin” on home sale and rental advertisements.

The housing groups that are suing Facebook say they created a fake real estate firm and submitted dozens of housing advertisements to Facebook for review to show that advertisers could exclude users based on their gender, family status, and whether they were interested in “disabled parking permits.”

“Facebook enables a real estate company or landlord to discriminate by selectively targeting housing advertisements to exclude specific populations,” Fred Freiberg, executive director of the New York-based Fair Housing Justice Center, which is also part of the lawsuit, said in a statement. “Facebook’s platform is the virtual equivalent of posting a ‘For Rent’ sign that says ‘no families with young kids’ or ‘no women,’ but it does so in an insidious and stealthy manner so that people have no clue they have been excluded on the basis of family status or sex.”

Facebook has denied any wrongdoing. A Facebook spokesperson told CNN, “There is absolutely no place for discrimination on Facebook. We believe this lawsuit is without merit, and we will defend ourselves vigorously. … We take prompt enforcement action when we determine that ads violate our policies.”

The National Fair Housing Alliance says Facebook has been repeatedly warned about its advertising practices over the years. For example, a customization option called “Ethnic Affinities” faced criticism from housing advocates in 2016 because it allowed advertisers to target or exclude specific groups for ads that appear on Facebook.

“Facebook has known for years that its advertising platform violates civil rights laws, but it has refused to change its ways on a voluntary basis,” Diane L. Houk, one of the attorneys representing the housing groups, said in a statement. “Facebook is not above the law and must answer these civil rights claims in court.”

Housing Opportunities Project for Excellence Inc. in Miami and the Fair Housing Council of Greater San Antonio are also plaintiffs listed on the lawsuit.

Facebook boasts more than 2 billion active users. The lawsuit comes at a time when Facebook is dealing with fallout from Cambridge Analytica and accusations that it mishandled the data of some 50 million users.

Source: National Fair Housing Alliance and “Facebook Sued for Allegedly Allowing Housing Discrimination,” CNNMoney (March 27, 2018)

HomePath mortgage financing, an easier, more affordable option for purchasing a home.

HomePath mortgage financing, an easier, more affordable option for purchasing a home.

Fannie Mae’s homepath mortgage is a special program offered to finance the purchase of Fannie Mae Real Estate Owned (REO) properties.

With a Fannie Mae HomePath mortgage you get the following benefits:

1 – Down payment as low as 5% and flexible mortgage terms.

2 – Down payment can be funded as a gift, grant or a loan from a nonprofit organization, state or local government or employer.

3-  Available for primary residences, second homes and investment properties.

Visit www.homepath.com to search for Fannie Mae REO eligible properties.

Places for Rental Returns in 2018

Places for Rental Returns in 2018

If your investors are in search of higher profits, they may want to look to Baltimore; Macon, Ga.; Montgomery, Ala.; Detroit; and Atlanta. These metros each boast counties that have some of the highest potential for single-family rental returns in 2018, according to a new analysis by ATTOM Data Solutions. The real estate data firm’s Q1 2018 Single-Family Rental Market report ranks the top U.S. markets for purchasing single-family rental properties. Researchers looked at the single-family rental returns in 449 U.S. counties that had populations of at least 100,000.

The average annual gross rental yield among the 449 counties was 8.9 percent for 2018, a drop from 9.2 percent in 2017, according to the report. ATTOM calculated the average annual gross rental yield by taking the annualized gross rental income and dividing it by the median purchase price of single-family homes. “Despite declining returns in many areas, the single-family rental market continues to grow thanks to more activity by smaller and middle-tier investors,” says Daren Blomquist, senior vice president at ATTOM Data Solutions.

The biggest increases in market share over the past year has emerged from investors who own six to 10 single-family rentals, followed by those owning between 11 and 100 rentals, Blomquist says.“These smaller to mid-tier investors are benefiting from newfound efficiencies in acquisition, financing, and property management that allow them to buy outside their backyard in areas with higher potential returns, and to leverage their money to buy more properties,” he adds.

The counties with the highest potential annual gross rental yields in 2018 were:

• Baltimore County, Md.: 28.6%
• Bibb County, Ga. (Macon metro area): 21.8%
• Montgomery County, Ala. (Montgomery metro area): 21.7%
• Wayne County, Mich. (Detroit metro area): 21.7%
• Clayton County, Ga. (Atlanta metro area): 20.3%

Source: ATTOM Data Solutions

Flood Insurance Premiums Are About to Go Up

Flood Insurance Premiums Are About to Go Up

Many homeowners and buyers in flood-prone areas will see higher flood insurance premiums starting April 1. The premium hikes, which are required by law, will be as little as 2 percent for some properties and as high as 24 percent for others. On average, the increase will be about 8 percent.

“The National Flood Insurance Program requires premiums to rise on certain classes of properties over a period of years until they’re paying the full actuarial rate on their risk,” say analysts with the National Association of REALTORS®. “The 8 percent average increase is right in the range of increases for the last couple of years, so there’s nothing unusual here. It’s just the standard rate increase.”

Under the change, the rate for a primary residence in an area deemed by the government to be a flood hazard will rise by 5 percent on average. That applies to so-called pre-FIRM properties, which are properties built or substantially improved before 1975 or before the initial Flood Insurance Rate Map was issued for the area by the federal government. Pre-FIRM properties that are second homes or used for business will see higher increases, possibly close to 25 percent. Those sharp increases have been in place since 2012.

Learn more about the rate changes in a bulletin released by the Federal Emergency Management Agency, which administers the National Flood Insurance Program.

—R. Freedman, REALTOR® Magazine

Affordable Housing Efforts

Affordable Housing Efforts

Under an umbrella of higher home prices, mortgage financing giants Fannie Mae and Freddie Mac have recently taken several efforts to try to open up housing options for low- and middle-income buyers. The government-sponsored enterprises have added support for three lower-cost housing options: rural homes, manufactured housing, and the existing stock of affordable homes.

More than 23 percent of Americans live in rural areas. The median incomes in rural areas tend to fall below national levels. Under a Duty to Serve program, Fannie and Freddie will be purchasing more loans in certain low-income areas. Fannie plans to purchase up to 5,000 additional rural single-family loans, and Freddie Mac expects to buy about 3,360 loans by the third year of the program.

“It’s unclear the impact it will have just yet. It’s new to the market, still unproven,” Gerron Levi, director of policy and government affairs at the National Community Reinvestment Coalition, told realtor.com®. “[But] when Fannie and Freddie enter the market and tell lenders, ‘If you make the loan we will purchase it,’ it will facilitate access to credit to those markets. [Private] lenders will be more willing to make loans.”

The GSEs have also made recent moves on the manufactured housing front. More than 17 million Americans live in manufactured homes, according to U.S. Census Bureau data. Manufactured homes cost a median of $73,800, which is about a quarter of the $269,500 median cost of new homes nationwide.

Freddie Mac has called manufactured homes “a critical source of affordable housing.” Fannie Mae plans to purchase an additional 4,540 to 5,540 manufactured-housing loans over three years, which could fuel an extra $500 million or more into the market. Freddie Mac intends to purchase an additional 1,000 more loans, which is 25 percent higher than it currently does. The GSEs announced they also will test out buying loans on homes held as personal property within manufactured housing to see if that makes it easier for low- and moderate-income buyers to get into these homes.

Fannie and Freddie also plan to resume investing in low-income housing tax credits. The credits are tax incentives to spur developers to build more affordable housing. The program was temporarily stopped during the recession.

The National Housing Law Project estimates that the credits provide funding for about 100,000 new affordable housing units each year. They also can create greater support for developers creating Section 8 housing.

Source: “Can Fannie and Freddie Provide a Jolt to Buyers Desperate for Affordable Housing?” realtor.com® (March 22, 2018)