Real estate market challenged by appraisal changes
July 30, 2009
The real estate market is showing signs of a thaw, but new obstacles hindering home sales have popped up as the home appraisal process is drawing the ire of real estate agents and mortgage companies. The housing market has been on a downward ride for the last two years, fueled by home foreclosures and bank repossessions further driving down home values across the country. The government working to try and put new safe guards in place to eliminate the possibility of another real estate bubble and credit crisis from occurring.
Regulators who have been under pressure for allowing mortgage companies to operate with loose guidelines and limited oversight in dealing with consumers applying for and qualifying into mortgages. The fallout for allowing unqualified home buyers to purchase homes was the creation of the housing bubble which put the country into its current economic recession. The outcry from politicians and consumer groups to change the mortgage industry has brought on a number of changes over the last year. The largest change in the lending industry has been the elimination of thousands of mortgage brokers around the country. Tighter guidelines from both the state and national level have worked to eliminate a large percentage of mortgage brokers, who are believed to be at the cored for creating the housing collapse through incentivized pay plans with wholesale lenders to steer buyers into riskier loan products.
The traditional real estate transaction involves a number of parties (realtor, mortgage company, title company and appraiser). Government regulators have worked to add another layer of protection for the consumer by altering the way a home appraisal is procured on a financed property. In years past, the lender would directly contact the home appraiser of their choice to have a property appraised. This practice drew the ire of regulators, as it was believed that lenders held the appraisal companies hostage, forcing appraisers to inflate home values. The inflated home values created by these appraisers was a key element in causing the housing market to collapse as home prices were appreciating at unsustainable rates.
The appraisal process has recently been altered, but is now drawing criticism from both lenders and realtors for having gone too far in the regulatory direction. The new legislation, referred to as the home valuation code of conduct, puts the responsibility of ordering the home appraisal in the hands of appraisal management companies. The idea is that the management companies would be independent of the lender and would select the appropriate home appraiser to conduct the property appraisal. The process sounds like an improvement to help reduce the coercion and pressure to inflate home values. Critics of the new program are stating that the management companies are selecting out of area appraisers who lack the local market knowledge to appropriately appraise a home, resulting in home appraisals that are now significantly lower in value than the actual home market should indicate. They believe that the management companies were ill prepared to manage the process, resulting in the cancellation of sales contracts for properties that normally would appraise for the contract sales price and hurting the overall real estate market.
The home appraisal process is critical to mortgage process. The lender is offering hundreds of thousands of dollars in exchange for collateral in a property and their only protection with their collateral is a proper home appraisal to verify value. It is clear that there will need to be further adjustments to the home appraisal process and further roadblocks to fixing the current housing crisis are truly a challenge for every party, but it is also clear that the new regulations are a vast improvement over the lack of oversight from years past.
Looking for furniture versatility, consider a sectional sofa
July 24, 2009
Sectionals are extremely popular with designers because their “footprint” or arrangement can be L-shaped, S-shaped or rounded, offering multiple looks within a single room Even though they may be made up of components; sectionals offer a seamless, all-in-one quality. Most often there’s a left-facing unit and a right-facing unit, and joined together, they form a long sofa. Joined at a right angle, they create an L-shape. A sectional can help set the tone of the room as well as incorporate a coffee table, ottoman, or book shelf and can easily work with multiple floor coverings.
Sectionals can be made from multiple fabrics or leathers. The flexibility of sectional sofa furniture allows for cushioned corners which can provide seamless integration and the appearance of furniture without arm rests. The versatility of sectionals is what provides the charm and popularity. If you are decorating for a contemporary feel or a traditional country charm, sectional sofas can work with your decorating plans. For many home owners the opportunity to buy a sectional sofa provides them with the piece of mind knowing they are not locked into one set layout for their primary living space. The versatility of sectional sofas allow for a quick room redesign by simply changing the layout of the furniture with the ultra flexible sectional sofa.
Some L-shaped sectionals seem perfectly suitable anchors for the corner of a room. Floating sectionals can loosen up a floor plan and serve as a room divider. A good option when shopping for a sectional sofa is to try an online room preview program. Most online retailers allow for you to mix an match potential furniture layouts within an online computer program to ensure that the furniture will work in your home, (allowing you to try before your buy), a great way to shop for furniture and feel confident that you are buying the right size furniture for your home. With so many styles and such versatility, it’s not surprising that the sectional has a broad fan base. Ultimately it’s all about comfort combined with maximum seating in more casual lifestyles. You can shop online or in a local retailer to find your new sectional sofa.
Remodel your home exterior with new vinyl siding
July 13, 2009
Home owners are increasingly turning to vinyl siding to remodel their home exterior. Traditional home exteriors can be brick, wood, aluminum of vinyl siding. Each type of siding offers pros and cons with cost, maintenance and aesthetic appeal. Examining the advantages of Vinyl siding, some of the key advantages include:
• Cost effective
• Easy to install
• Easy to maintain
Vinyl siding has been available to home owners for over forty years and has been a product of choice because it is durable and versatile, while offering home owners the opportunity renovate their home exterior without painting. Vinyl siding is manufactured primarily with polyvinyl chloride (PVC), a material that gives it impact resistance, rigidity and strength. PVC is composed of chlorine and ethylene and has proven to offer extremely durable resistance to weather elements. One of the main reasons why vinyl siding has become some popular is that it is extremely easy to clean and maintain. Cleaning vinyl siding is as simple as housing down the exterior and in certain cases using a mild soap and soft brush.
Vinyl siding is available in wide variety of colors, profiles and trim for homeowners to choose when looking to remodel their home exterior. There are a number of companies that will allow a purchaser to customize their color and texture, although going this route will likely add to the end cost of the project. The thickness of the vinyl siding will be a factor into the end cost of the project. Thicker vinyl siding tends to last longer, providing more durability against weather and is less likely to crack with temperature fluctuations. The one common issue raised with vinyl siding is that it has a tendancy to crack with large fluctuations in temperature.
Vinyl siding can be installed as a do it yourself project or through a licensed building contractors. Most first time installation projects will yield a better result if they are tackled by more than one person. It is important to properly install the siding to the homes exterior and applying an installation material to the home before applying the siding will help provide added energy efficiency. Siding is manufactured with a built in locking system for installation.
Homeowners who are considering remodeling their homes exterior with vinyl siding should consider obtaining multiple pricing quotes from local home improvement companies as well as local home supply centers. Renovating your home exterior can add considerable curb appeal to your property and add to the homes resale value.
4th of July inspires the purchase of a new grill
July 7, 2009
The summer inspiration for barbequing outdoors helps drive the sale of charcoal and gas grills across the country. Every year, there is a peak period for grill sales from Memorial day through the Fourth of July. From the most novice grillers, to the neighborhood expert there is likely to be a grill that fits everyone’s budget and amenity checklist.
There are two basic types of grills, charcoal and propane gas grills. Charcoal grills can range in price from ten dollars up to several hundred depending on the size and quality. There is a contingent of consumers who refuse to grill with anything other than a charcoal grill, as they believe that the charcoal grill adds flavor to their barbequing. The opportunity to add the smoky flavor to a meal outweighs the convenience of a gas grill to this group. Charcoal grills also tend to offer the benefit of portability. The ability to take a grill and some charcoal and hit the road for a barbeque at the beach, ballgame or park will keep these grills around for years to come.
Propane gas grills have radically changed over the last ten years. Today, these grills can offer features such as multiple heating zones, side burners, temperature gauges and more. These grills can range in price from under one hundred dollars, to several thousand dollars or more. Today, high end gas grills are often the centerpiece of outdoor kitchens that can feature full refrigerators, dishwashers and more. Propane gas grills offer tremendous convenience, and one of the most useful extras to purchase is a propane fuel gauge, that can be applied directly to the propane tank to ensure that you have adequate fuel for all of your barbecue adventures.
The Fourth of July holiday brings on a peak of customers looking to purchase new grills. Whether you are looking for a gas or charcoal grill, today’s grills are likely to have all the bells and whistles you could possibly imagine. Before you head to the local hardware store to purchase, hop online and you will be amazed at the number of grills you can research and buy from the convenience of your home.
More retail companies shift budgets to reach consumers online
July 3, 2009
The evolution of the Internet and consumer buying is pushing more companies to increase their online advertising budgets while creating websites that are consumer friendly. The economic recession is forcing almost every organization to review their marketing budgets and how they attract customers. Today, more than ever companies are placing a new focus not only on customer acquisition, but on customer retention. This shift comes at a time when consumers are stretching their budgets and looking for ways to save.
The evolution of the Internet and shopping online has brought a renewed focus on the ability for a potential consumer to compare multiple products or retailers online within minutes. Today, consumers who are shopping for furniture are likely to seek out opinions on quality, price and the manufacturer. More retail sites are offering the ability for users to interact and leave their own reviews and product opinions. These testimonials aid consumers who are researching their purchases, while enabling the retailer to have some added stickiness to their website, a win-win for the retailer and consumer.
The second generation Internet is proving to be much more lucrative for retailers who have more proven customer acquisitions methods, and proven distribution channels in place to satisfy their customer demands. A number of major retailers are now pushing rewards & rebates to retain customer loyalty. One of the newer concepts is to shop online through a third party website that allows the customer to participate in a percentage of the sale income, through a shopping rebate. These websites are participating with the retailer in a revenue share program and then distributing this back to the consumer in gift cards, rewards or cash. This evolution of customer acquisition can benefit consumers who shop online and are looking for specific name brand appliances, clothing, furniture or household items.
Internet shopping will likely grow between ten to twenty percent year over year for the next ten years, according to most industry experts. More companies are now engaging in loyalty programs, driven through email to “drip market” to consumers who have visited or purchased a product on their websites. Some companies acknowledge they send emails once or twice per month, greatly reducing their customer acquisition costs and enabling them to work with loyal customers, which translate over to better priced products, as well as the company’s bottom line.
The Internet will put more power in the hands of consumers who can shop from the comforts of their home or office, compare prices and order their ideal products with the peace of mind of consumer reviews. There are a number of consumer comparison sites such as shop.com, nextag.com, shopping.com that help to organize retailers and products to help simply the process and make online shopping smooth and efficient.
