Don’t Underestimate Power of Pets

Don’t Underestimate Power of Pets

Pets are having more of an influence in home buying and selling as well as renovation, a new study by the National Association of REALTORS® shows. Eighty-one percent of Americans say that animal-related considerations play a role when deciding on their next living situation, according to the 2017 Animal House: Remodeling Impact report.

“In 2016, 61 percent of U.S. households either have a pet or plan to get one in the future, so it is important to understand the unique needs and wants of animal owners when it comes to homeownership ” says NAR President William E. Brown. “REALTORS® understand that when someone buys a home, they are buying it with the needs of their whole family in mind; ask pet owners, and they will enthusiastically agree that their animals are part of their family.”

Indeed, a whopping 99 percent of pet owners say they consider the animal part of the family. Eighty-nine percent of respondents say they would not give up their animal because of housing restrictions or limitations. Home owners are willing to move for their pets too. Twelve percent of pet owners have moved to accommodate their animal; 19 percent would consider moving to accommodate their animal in the future.

Pets could cost you real estate deals. REALTORS® surveyed say that about one-third of their pet-owning clients often or very often will refuse to make an offer on a home because it is not a good match for their pet. Sixty-one percent of buyers, REALTORS® say, find it difficult or very difficult to locate a rental property or a homeowners association that accommodates pets.

Animals are having a say when it comes to the selling of a home too. Sixty-seven percent of REALTORS® say animals have a moderate to major effect on selling a home. About two-thirds of REALTORS® say that they advise pet-owning sellers to always replace things in the home damaged by an animal, have the home professionally cleaned to remove any animal scents, and to take animals out of the home during a showing or open house.

Pets are serving as guides to renovations too. Fifty-two percent of respondents say they had completed a home renovation project specifically to accommodate their pet. Twenty-three percent of those remodelers had built a fence around their yard; 12 percent added a dog door; and 10 percent installed laminate flooring.

Realizing the growing importance of pets in real estate matters, more real estate professionals are marketing themselves as pet friendly. Eighty percent of REALTORS® surveyed by NAR say they consider themselves animal lovers. Twelve percent of the REALTORS® say they volunteer for an organization that helps animals, and 21 percent plan to do so in the future.

Source: National Association of REALTORS®

Here Come 59 Million Buyers!

Here Come 59 Million Buyers!

One in four U.S. adults say they are considering buying a home this year, which extrapolates to a whopping 59 million people, according to a recent survey by Bankrate.com.

Minorities are expected to be big buyers this year. More than two in five black survey respondents said they were considering buying a home. That is more than double the percentage of potential white buyers.

“Black homeowners were harmed in greater numbers by the housing crash” and the foreclosure crisis, says Holden Lewis, a Bankrate.com mortgage analyst. “Now that the economy has improved and time has passed, maybe they’re ready to jump back in and own a home again.”

Also, older millennials and Generation X – which encompasses the ages of 27 to 52 – are showing more willingness to either become homeowners or trade up to a new home, the survey showed.

Young adults have mostly delayed homeownership. “They have been stymied by stagnant wages, student loans, and a lack of available starter homes,” Lewis says. “If enough affordable homes are put on the market, we might see a surge of first-time home buyers in their early to mid-30s.”

Lewis notes, however, what many people say is not always what they’ll be able to do. Rising mortgage rates and an uptick in home prices could prevent some would-be homebuyers from saving enough for a down payment and limited inventories could delay their efforts in finding a suitable home to buy.

About 6 million new and existing homes were sold last year, according to the National Association of REALTORS® and U.S. Census data.

Source: “Know Your Competition: 1 in 4 Adults Is Planning to Buy a Home,” realtor.com® (Feb. 9, 2017)

Consumers More Optimistic About Housing

Consumers More Optimistic About Housing

More Americans are showing optimism toward their personal finances and the housing market, a reversal to a five-month decline.

In particular, Americans are more upbeat about home prices, home selling, their rising household incomes, and they’re less scared about losing their jobs, according to Fannie Mae’s Home Purchase Sentiment Index, a survey of 1,000 Americans in January about their attitudes toward housing.

“Three months after the presidential election, measures of consumer optimism regarding personal financial prospects and the economy are at or near the highest levels we’ve seen in the nearly seven-year history of the National Housing Survey,” says Doug Duncan, senior vice president and chief economist at Fannie Mae. “However, any significant acceleration in housing activity will depend on whether consumers’ favorable expectations are realized in the form of income gains sufficient to offset constrained housing affordability. If consumers’ anticipation of further increases in home prices and mortgage rates materialize over the next 12 months, then we may see housing affordability tighten even more.”

Here’s a closer look at some of the findings from the latest survey:

• 42% of Americans believe home prices will increase, a month-over-month uptick of 7 percentage points in January.
• 69% of Americans say they are not concerned about losing their job, a 1 percentage point increase from December 2016.
• 15% of Americans say now is a good time to sell, a 2 percentage point month-over-month increase.
• 15% of Americans who say their household income is significantly higher than it was 12 months ago, a month-over-month increase of 5 percentage points.
• 29% of Americans who say now is a good time to buy a home, a 3 percentage drop from December 2016 and a new survey low from May and September 2016.

Source: Fannie Mae

From Boom to Bust? Farmlands Are In Trouble

From Boom to Bust? Farmlands Are In Trouble

Many farmers are facing higher debt as a multiyear drop in prices for corn, wheat, and other commodities plagues on. That is pushing more farmers out of business. The Farm Belt will soon have fewer than 2 million farms, the lowest in years.

Still, economists aren’t predicting the crisis to be as severe as the one that struck the Farm Belt in the 1980s, in which farmland values plummeted and interest rates soared.

Economists expect farmland values to fair much better this time around. After all, farm incomes reached record highs just in 2013. Many farmers still have significant cash reserves. Interest rates are still relatively low too, despite recent upticks.

“For some, the slump is an opportunity,” The Wall Street Journal reports. “Farmers with low debts and enough scale to profit from last year’s record harvests could be in a position to rent or buy up land from struggling neighbors.”

Nevertheless, lenders say farmers are going through their saving fast. They say  younger farmers – without sufficient reserves — and large growers – those who may have expanded too much during the boom years — may be the most vulnerable. Large growers may have accumulated too much debt in recent years as they expanded operations and also locked into multiyear land leases at high rents.

“The potential for a big crisis is real,” says farmer Less Scheufler, who has expanded his farm nearly 10-fold over the years. “If things stay similar to how they are now, you haven’t seen anything yet.”

Source: “The Next American Farm Bust Is Upon Us,” The Wall Street Journal (2017)

Top Landscaping Trends for 2017

Top Landscaping Trends for 2017

Smart technology, thoughtful — yet simplistic — design, and sustainability are the keywords when it comes to landscapes today.

“Savvy homeowners are seeking smart landscape solutions, which means we’re finding new ways to adapt to environmental elements, making continued advances in technology and taking outdoor living to the next level,” says Missy Henriksen, vice president of public affairs at the National Association of Landscape Professionals. “At the same time, a return to simple plantings reflects that although innovation in landscaping continues to accelerate, savoring the effortless beauty of the outdoors remains a top priority.”

The National Association of Landscape Professionals released their list of the top trends to watch in landscapes this year:

1. Incorporating a variety of greenery. Greenery isn’t just Pantone’s Color of the Year for 2017 but the color is adding pop to exteriors too. “Combining greenery of various textures and shades, such as a formal hedge of green velvet boxwood, a border of green lilyturf, and dense Boston ivy-covered trellises, is just as impactful as a garden filled with a rainbow of colorful flowers,” NALP notes.

2. Infusing “hygge.” Hygge is a Danish concept that is centered on creating an atmosphere of coziness and embracing the simple pleasures of life. “Decorating with light, arranging seating for close-knit conversations, planting aromatic flowers, and adding water features to encourage mindfulness are a few ways to integrate hygge into landscapes, and to find more enjoyment and fulfillment in outdoor spaces,” NALP notes.

3. Cooking up tech-centered outdoor kitchens. More homeowners are adding exterior kitchens, but they’re going beyond your basic grilling station and dining set. Outdoor kitchens are now including smart home technology, such as built-in consoles on refrigerator doors, mobile app-controlled LED lighting, and ovens integrated with Wi-Fi.

4. Combining materials. More landscapes are interweaving several forms of hardscape materials, such as pebble paths with stone planters or wooden decks with iron gates and railings. The pairings of different materials are creating a less formal look to landscapes, NALP notes.

5. Adding pollinator gardens. “Increased attention on the importance of pollinators to our ecosystem has inspired homeowners to develop gardens that specifically attract vital honeybees, hummingbirds, and butterflies,” NALP notes. “More homeowners are asking landscape professionals how to select native plantings that are abundant, year-round nectar sources throughout their yards, and the best ways to maintain these natural havens.”

6. Creating smart lawns. Landscape professionals have made advancements in developing cultivated grass varieties, called cultivars, that are known as being a form of smart grass. “They can better withstand the elements while still delivering an aesthetically beautiful and healthy lawn, making them especially desirable in drought-prone areas,” NALP notes.

Source: National Association of Landscape Professionals

Give Second Thought to the TV Home Makeover

Give Second Thought to the TV Home Makeover

Some homeowners who sign up to have their homes redecorated and remodeled on a reality TV are having regrets. They say they got stuck paying thousands of dollars later on due to the TV renovations.

Attorneys warn: You have to read the fine print before agreeing to these TV shows. On these reality decorating shows, homeowners aren’t often in complete control over what happens to their home. They may not like the design in the end. Further, to meet production schedules, work often has to be rushed and when a mistake is made, the homeowner may get stuck footing the bill, particularly after the cameras have stopped rolling.

Another lesson these homeowners are learning: Bigger tax bills. They may be forced to pay a higher tax bill due to receiving gifts of new high-end appliances or furniture. They also might see higher property taxes due to the upgraded additions made to the home.

Some owners are taking the TV shows to court. Deena Murphy and Timothy Sullivan from North Carolina sued the production company and contractor for HGTV’s “Love It or List It” last year, alleging they ruined their rental home and increased their costs. The couple claims they had to pay the production company $140,000 for a contractor. The couple was dissatisfied with the renovation in the end, and they allege in the lawsuit that the materials used were poor quality, the floors were “irreparably damaged” and that some windows were painted shut.

Jerry Glover, entertainment attorney, says homeowners should not completely discredit all of the work done on these decorating TV shows, however.

“A lot of good work is actually done” on these reality shows, says Glover, an attorney with Leavens, Strand & Glover in Chicago. “But know that there’s a risk.”

Glover encourages homeowners to consult an attorney before appearing on any makeover TV show to have the contract thoroughly vetted so they become aware of their risks. In many cases, homeowners sign away their right to sue or seek damages if anything in the remodels go wrong, Glover says. Also, he says that it’s important homeowners talk to an accountant beforehand to understand the full tax ramifications too and avoid any post-sticker shock from their tax bill.

Source: “Want Your Home to Get a Reality Show Makeover? You’d Better Read the Fine Print First,” realtor.com® (Feb. 2, 2017)