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Alaska Permanent Fund plans to invest in foreclosed homes

Alaska Permanent Fund plans to invest in foreclosed homes: JUNEAU, Alaska - The Alaska Permanent Fund Corp. is considering buying homes in distressed housing markets outside the state for an investment of $400 million. Executive director Mike Burns told...

This Month In Real Estate May 2012

Should you get a Roommate to Help Make Extra Money?

Can I Make Money Renting a Room in My House?

If you have more space than you have cash, renting a room in your house can be a good way to make ends meet.



If you’re a homeowner with extra space in your place and you don’t mind a roommate digging around in your fridge late at night, renting a room in your house can be a super way to raise some cash. Renting a room can also help to cover the costs of home ownership such as maintenance and utilities. Sounds fantastic, right? Just follow these tips to keep your roommate situation safe and satisfying.

 

Marketing Your Room for Rent

Craigslist offers free classifieds that allow you to make custom postings for roommates, as do many newspaper websites. For clues on how to price your rental, visit the Craigslist.com site for your metro area and select “rooms/shared housing” from the menu. You can use existing postings to figure out how to price and market your rental. Take note of how landlords use photos and details to market their rooms for rent.

 

Finding a Good Roommate to Rent a Room in Your House

Think about the kind of person with whom you’d like to share your home and write ads that reflect your lifestyle and requirements. If you’re a vegetarian household, be clear about that. If you dislike noise after 9 p.m., be clear about that also. You should specify what percentage of the utilities the person will pay in addition to rent and how you plan to manage food sharing and preparation.
Be meticulous in identifying how household responsibilities will be split and all charges that are associated with the room rental such as a weekly cleaning fee, pool service, Internet access or other general household expenses. Be sure to articulate your house rules with regard to guests visiting and spending the night. If you’re not careful, you can end up with two roommates for the price of one.

Background & Credit Checks

Never, ever rent a room without first doing background research. Before you invite someone to live with you, be sure to order criminal, sex offender and credit checks. There are affordable and simple online services that are designed for landlords – some as low as $25 or $50. As a part of the application process, you can ask the tenant to pay a non-refundable credit check fee to cover the cost. This will deter tenants with bad credit problems or criminal histories from pursuing your rental. If someone isn’t able to pay for a credit check, swallow the cost or tack it on to their rent.

 

Interviewing Roommates Prior to Renting a Room in Your House

Take some time to identify what is important to you from a lifestyle perspective before interviewing prospective roommates. Whether you are a quiet, contemplative person who spends a lot of time at home or a very social, active person who likes to have friends over, you should ask questions that identify a good fit for you:

• Do you wear headphones when you listen to music?
• How much time do you spend at home?
• Do you have lots of friends or do you tend to keep to yourself?
• Do you like to entertain friends at your home?

Make a list of questions and details that are important to you, then take the time to learn whether or not your potential tenant is really a good fit. This exercise may also reveal that you really don’t want a roommate. If you’re very sensitive and particular, it could be that you’re better off finding a different way to bring in extra cash.

 

Crafting a Lease

Before renting a room in your house, or even marketing your property, determine the type of lease that best suits your situation. If you don’t mind the ebb and flow of new tenants, a month-to-month lease or shorter period lease (such as three or six months) can be a good way to start. Since you have to share common space with the tenant, you will want to carefully consider the type of commitment that you’re willing to make – just in case the tenant turns out to be less than wonderful.
It is never wise to rent a room without a lease. Though it seems easier, it can be difficult to remove a problematic tenant or to recoup rent costs if you do not have some legal documentation to support your arrangement. Make the effort upfront to protect yourself and your property from ill-intentioned renters.

 

You can Make Money Renting a Room in Your House

If you can tolerate a roommate situation and are clear about your household rules along with the financial responsibilities of the tenant, you can definitely make some money renting a room in your house. However, before committing to a roommate, ask yourself if you’re willing to do the work to ensure that your tenant is a safe bet who will honor a lease agreement. If not, you should consider alternative ways of enhancing your income.


Source: http://www.homesinak.com/miarticles/articleid/48/

May 2012 Market Update

May 2012  Market Update

The housing market and the overall economy are improving at modest rates nationally, and in some areas they have actually gained momentum. The Conference Board’s CEO confidence index is up a notable 14 points—from 49 last quarter to a current reading of 63. A reading of 50 is the threshold above which indicates an optimistic outlook and below indicates pessimism. Rapidly growing optimism is a good sign for future hiring and growth.

“The recovery is happening, though not at a breakout pace, but we have seen nine consecutive months of year-over-year sales increases,” NAR Chief Economist Lawrence Yun said.

“Existing-home sales are moving up and down in a fairly narrow range that is well above the level of activity during the first half of last year. With job growth, low interest rates, bargain home prices, and an improving economy, the pent-up demand is coming to market and we expect housing to be notably better this year.”

As rents continue to rise, buying becomes a more and more attractive option as home affordability, or the percent of income it takes to pay the mortgage, continues to be among the most favorable in history. The current record interest rates, which factor into affordability, cannot last forever—buyers wanting to take advantage of this unique time in history will want to act before rates rise.

Home Sales

In Millions

Home sales slipped 2.6% from the previous month to 4.48 million units, yet are 5.2% higher from a year ago. A strengthening economy is improving consumer confidence and drawing an increasing number of people into the market. In some local markets, there is not enough inventory of quality homes for buyers to purchase. As these markets see more new listings for their hungry buyers, national home sales could increase.

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Home Price

In Thousands

Thanks to a decline in distressed properties, which sell for a 15%–20% less on average compared to non-distressed homes, the median home price rose 5.3% compared to the previous month and 2.6% compared to a year earlier to $163,800. This is the first time in 8 months that home prices have been up by over 1% month-to-month. NAR President Moe Veissi said, “In most areas over the long term, home prices have nowhere to go but up.”

Inventory- Month's Supply

In Months

Housing inventory remained stable from the previous month at 6.3 months supply and was 26% below year-ago levels. This marks the fourth consecutive month of inventory near a six-month supply, which is the threshold of a balanced market. Movement out of the deep buyer’s market that has persisted over the past three years is an important step that must precede a full-scale housing market recovery.

Source: National Association of Realtors

Topics For Home Owners, Buyers & Sellers

Pricing a listing at market value is a critical component to getting it sold. Here are a few of the advantages of pricing it right:

• Less Time on the Market. Homes that were priced at market value sold in half the number of days as homes that were overpriced.

• More Money. Pricing right when the home is first listed leads to sellers netting a higher percentage of their asking price, also referred to as the list-to-sell ratio.

• Less Hassle. When a home is priced right, it means that fewer buyers need to view the home to understand it is a good value—and that leads to fewer showings before getting an offer.

• Fewer Reductions. When a home is priced at market value, often it won’t need a price reduction. Depending on local market conditions, sometimes it will—either way, it will be less likely to require one if it is priced right to begin with.

• More Multiple Offers. Homes that are priced right are twice as likely to have multiple offers.  This can lead to a higher sold price and it puts the seller in the driver’s seat by providing more options to choose from.

Contact me today or request my FREE Guide to Selling Your Home online!!