Trulia economist gets asked great questions on Reddit

Jed Kolko, Trulia’s (TRLA) chief economist, conducted an “Ask Me Anything” session on Reddit.com on Friday. Kolko answered questions ranging from the outlook of the national home market to whether buying a home is even a sound investment anymore.

Here are some of best answers:

Is buying a house a sound investment?

Kolko: “When you look over the really long term, housing has tended to be roughly similar to stocks/equities. And housing has never actually been a totally safe investment. Even though the recent housing bubble and bust were severe, there have been lots of localized home-price drops over the decades.

“Coming out of this housing crash, the big change is that people now realize housing is not a risk-free investment. Hopefully we'll all remember that home prices sometimes do go down, and it's important to factor in that risk when deciding whether to buy.”

Is it better to buy or build your home?

Kolko: “Great question, but there's no one right answer.

“Building a new home (or buying one that's under construction) lets you customize features yourself, and its often easier to build in certain features (Ethernet wiring, radiant heat, etc.) from the start than tearing up an existing home to add them.

“However, new homes are typically more expensive to buy than existing homes. Also, some people prefer older, more established neighborhoods, where new homes are rarer.

“Finally, if you're thinking about being your own developer and overseeing the construction of a new home yourself, that could give you lots of control over every feature -- but development could be a full-time job. Only do that if you really love the process.”

Is the housing bubble about to burst again?

Kolko: “Our research shows that home prices still look 5% undervalued nationally. Even though prices have jumped in the last 2 years, they're still in rebound mode after the huge price declines of the housing bust.

‘Even though I don't think we're in a bubble nationally, homebuying is getting more expensive. Prices are rising around 10% year-over-year, and mortgage rates are rising. So it will probably be more expensive to buy a home a year from now than it is today, but lots of people don't have the down payment or can't get a mortgage today.”

What do you think of the current state of the Manhattan market?

Kolko: “Manhattan prices are sky-high, making Manhattan one of the few places in the country where it's cheaper to rent than to buy a comparable unit. Nearly everywhere else in the country, buying looks cheaper, thanks in large part to mortgage rates that are still very low by historical standards.”

What about the California market?

Kolko: “Southern California home prices now look about 10-15% overvalued relative to fundamentals. But even when SoCal is not looking bubbly, it's still an expensive place to live.

“Housing affordability is always a challenge for California, especially in the big coastal markets. It's hard to build new housing: most of populated California is a strip of land sandwiched between an ocean and mountains, so geography limits the amount of new construction. On top of that, regulations hold back housing construction further. Housing affordability will probably always be a challenge in California unless construction in the big coastal metros increases significantly.”

10 Things You Should Do Two Months Before a Move

Start the Countdown

You know when you're getting ready to move, and you think, "This is nothing. I can get it done in two weekends."? Well, you should really stop thinking that way because one thing's for sure: Moving pretty much always takes longer than you think it's going to take. So, be smart and plan ahead. There's lots of packing and organizing you can get out of the way two months in advance of your move. 


Get Estimates from Movers

Unless several of your friends look like Dwayne "The Rock" Johnson, you're probably going to need to hire professional movers to do the heavy lifting. But if you put off lining up movers, you might not have time to conduct research and get the best deal. So, go ahead and get that out of the way at least two months in advance. Ask your friends and relatives if they recommend any movers, call the movers in your area, compare prices and then line one up for your moving day. Besides a decent price, you should be looking for a reputable company that is licensed with your state's Department of Transportation (DOT) and, if you're moving out of state, licensed for interstate transport. You also want a moving company (and its workers) that are bonded and insured. If you want to be super thorough, you can even check up on the company by contacting your local Better Business Bureau 

Select a Mover and Review the Details of the Move

Once you've selected your mover, make sure you understand what the final agreement is before signing a contract. Does the business charge by the hour, by the item or by overall weight? Will the moving company be doing any packing for you? Will you have movers move only the large items or every item? Is there a special charge for large awkward items like a piano or a pool table? Are the employees handling your move bonded and insured? Is the quote you received non-binding or binding? A binding estimate should guarantee that the price would not change. If it's non-binding, should you be worried about any surprise charges? For example, say you're moving from a house in the suburbs to a high-rise apartment in the city. Will you be charged an extra delivery fee because the movers have to take the elevator up to the 24th floor? And, if there's no place to park the moving truck near the high-rise, will you incur a shuttle fee?

Collect Boxes

You'll want to start packing up your nonessential items, so you need boxes. You can buy boxes from a retailer. But you can also find other ways to score free boxes. Have any of your friends or relatives moved recently? They may have some boxes they'd like to get off their hands. Or you may be able to pick up boxes from a business -- and don't just hit the standard grocery stores and ABC stores, think outside the box. For example, if you live in a college town, check out apartment complexes that are located near campus, they may have a recycled box network so that you can pick up gently used boxes from someone who has just moved to the area. Or, go online -- you might be able to find boxes via Craigslist or Freecycle. 

Begin Packing Little-used Items

You may think it's silly to start packing two months in advance, but if you're like most people, there's plenty of stuff you don't use on a regular basis that can be packed up in a box. For example, if it's summer, start packing your winter items -- winter clothes, heavy blankets, holiday gear. Or you can pack by the room -- and perhaps the guest room is a good place to start, since it's used the least. You decide. Remember to pack small items in the big boxes and large items in the small boxes. It seems counterintuitive, but it will prevent box breakage.

Go Through Your Stuff and Identify Unwanted Items

Moving is the perfect excuse to get rid of unwanted junk that's collected in your house over the years. The rule of thumb is: If you haven't used it in about a year and it doesn't have any sentimental value, get rid of it. It can be hard to let things go, though, so you may need to go through each closet or storage space twice. On the first run, you'll remove the obvious unwanted things, and on the second run you'll remove the items you're a little more attached to.

Have a Yard Sale

Now that you've set aside your unwanted things, it's time to figure out what to do with them. Since you're doing this two months in advance of your move, you've got time to plan a yard sale. Yard sales are generally on Saturdays, and you'll need to advertise to get a good turnout. So, put up fliers where it seems logical - your workplace, your church, your community center, the local library and, of course, don't forget to put up signs around your neighborhood. There are even Web sites where you can advertise your sale. If you're looking to make money, check eBay before you price your items to make sure you're not essentially giving stuff away. Of course, that is an excellent option; you can do just that.

Donate Items to Charity

If you don't want to hawk your unwanted items from your front yard, give them to charity. There are a million ways to give your things away. Anything from cars to appliances to clothes and shoes can be donated to a charitable organization. Start by going online to see what nonprofits have locations in your area and find out what their needs are. Choose a charity that needs the types of things you'd like to give, and then just give. Many nonprofits even set up receptacles on the side of the road to accept your donations. It's easy!

Notify Correspondents of Your Move

Even in our busy world of e-mails, texts and tweets it's nice to find a letter or card in our mailbox now and then. So, it would be really sad if you don't receive all those lovely holiday and birthday cards because your friends and relatives don't know what your new address is. Let people know that you're moving and what your new address will be. It can be as easy as sending out a mass e-mail with all the pertinent information. Or, you can order a pack of moving announcements and put that holiday mailing list to good use. If you're moving to another town, you might even get a going-away party out of the deal.

Plan Menus to Use up Food in the Cupboards

As you start looking through your cupboards, you might notice you've collected some nonperishable food that you'd rather not pack up and move to the new place. So, sit down and put together some menus to use up that food before you move. It might actually be fun to think of creative ways to use mushroom soup, canned pineapples and spaghetti in one meal. And if the move has you too busy to manage this type of culinary cleanse, pack everything up for the local shelter or a food drive. Or, invite some neighbors over for a pantry-clearing party and send them home with the goods.

Arrange Air Travel for Family, if Necessary

you'd rather not pack up and move to the new place. So, sit down and put together some menus to use up that food before you move. It might actually be fun to think of creative ways to use mushroom soup, canned pineapples and spaghetti in one meal. And if the move has you too busy to manage this type of culinary cleanse, pack everything up for the local shelter or a food drive. Or, invite some neighbors over for a pantry-clearing party and send them home with the goods.

If you're moving to a faraway place and you're not driving, then you'll obviously need to buy plane tickets for yourself and your family. It'd be great if you could get this out of the way well before the two-month mark, so you can watch ticket prices and strategize a good ticket deal. But when you're transferred due to work or you've accepted a new job offer, you don't always have that much notice. If possible, buy your tickets at least two months in advance of your move. And don't forget the family pets -- arranging their travel can take even more preparation.

By Amanda Arnold

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New-home market makes gains

Government reports about the residential-construction industry suggest the new-home market is recovering quite well.

Anthony E. Maras readily agrees and, as K. Hovnanian Homes' area president for Pennsylvania and South Jersey, he has the numbers to prove it.

Since taking his post at K. Hovnanian in June after eight years with Heritage Building Group, first as general counsel, then as president of the home-building side, Maras says he's "been growing Pennsylvania" and the cultivation is bearing much fruit for the Edison, N.J.-based national company.

"There are huge opportunities in Pennsylvania," he said, "and we are targeting sites in good areas."

That is, those convenient to commuter routes, with good schools. Key word: location.

"We look for sites that fit the product to the demographic," especially in areas where there isn't much product to begin with, he said.

One example: Whispering Pines, K. Hovnanian's 78-townhouse community in Warminster, which recently sold out after just three years.

Another: Big Oak Crossing in Langhorne, offering 143 2,200-square-foot, three-story townhouses with two-car garages, at prices starting at $340,000. Since November, when sales began from a trailer, K. Hovnanian has sold 24 units - model homes weren't even open until January, and the winter was the coldest and snowiest in years.

What's more, Maras said, "a lot of customers are putting $30,000 to $40,000 in options into the townhouses," which pushes up the final sale price.

A sales pace of seven units per month has justified the company's faith in building in Bucks County, he said.

Maras noted that Whispering Pines in Warminster had a "fair number of trade-down buyers."

But because Big Oak offers two distinct floor plans, the community is drawing a "mix of first-time, move-up and move-down buyers, with and without children," he said. One plan has a modern, urban feel, drawing people moving from apartments, he said; the other is more traditional, and so is attracting an entirely different demographic.

Commuting distance to New York and Philadelphia and the quality of schools - in the case of Big Oak, the highly rated Neshaminy district - are always factors in the location equation.

"The Trenton station is just 15 minutes away, and the Woodbourne [stop on SEPTA's West Trenton line] is three miles," Maras said of Big Oak.

Location also means access to what Maras called "daily resources" and "the things we do in daily life."

"How easy it is to get to shopping or the kids to school plays a big role in buying decisions," he said.

Maras jokingly described the road to his current position as "tortured," starting out as a lawyer, then focusing, beginning in 1993, on developers' land-use issues.

He joined Riley Riper Hollin & Colagreco in Exton in 2001, then went to work as general counsel for Heritage Building in 2005.

One of the biggest challenges Maras deals with is the lengthy process involved in getting land through government-approval processes, which can take four to six years from the time the property is purchased.

Another is improving the land, which, many builders say, can cost anywhere from $35,000 to $100,000 a lot over and above the actual purchase price of the property.

Since the success of any project can depend on timing, Maras and K. Hovnanian are searching for "raw approved and improved land" to build on.

The Langhorne site it purchased from a commercial developer for Big Oaks already had gone through the residential approval process, so K. Hovnanian could begin sales as demand was rising.

Otherwise, Maras said, developers face a protracted process that can be a bar to quick market entry:

"Some developers get all the approvals and then don't build, and the rules change in the meantime, and they can't get started when they are able."

Others let approvals expire, he said, and when they are finally ready to build, "they have to start the process over again."

By Alan J. Heavens, Inquirer Real Estate Writer

Help clients avoid cost overruns, property tax sticker shock on new construction

If 54 percent of buyers are willing to consider purchasing new construction, it’s important that you educate yourself about the ins and outs of representing buyers on this type of property. Not only will this help you with new-home purchasers, it can also make a huge difference in your resale business.

I recently visited a new subdivision called Teravista that straddles both Round Rock and Georgetown, Texas. It was fascinating to visit the various builders, see the differences in the finished products, and see what major builders are doing to market their properties.

Luxury, quality and privacy bring substantially higher prices

We had some trouble locating the “Brand Spankin’ New Models” and ended up on the north end of the subdivision in a gated area. I was under the impression that the houses in this area were no more than $400,000 to $500,000 since most of the property was advertised as being priced from $220,000 to $350,000.

Imagine my surprise when we walked into a custom home priced in the high $800,000s. The high-quality finishes, the floor plan, the view of a water feature on the golf course, and the other amenities made it immediately clear as to why this builder was successfully selling homes $300,000 to $600,000 higher than prices elsewhere in the subdivision.

I asked the sales agent about the people who were buying these homes. Many were doctors and other professionals working 30-60 miles north in Killeen or Waco who wanted the great schools and amenities available in the Round Rock and Georgetown area. Of course, a substantial number were relocating from outside Texas where a house of this quality could easily be over $2 million.

In terms of how to advise your buyers, purchasing the most expensive home in an inexpensive subdivision yields a much lower return as opposed to purchasing the least expensive home in a more expensive area. Please keep in mind that the quality of the home, the commute and other lifestyle factors normally outweigh the investment part of their decision.

There are two primary reasons that most buyers end up spending 30-40 percent more than they budgeted on their new home."

Cost overruns

There are two primary reasons that most buyers end up spending 30-40 percent more than they budgeted on their new home. First, if the buyer is building with a production builder, the buyer picks out the floor plan, exteriors and finishes based upon the options that the builder offers. The builder notifies the buyer of the final price five to seven days later. At that point, the buyers have already committed to having the home the way they designed it. Cutting back is extremely difficult. The same is true with custom builds when the buyers work with their own decorator.

The second reason for cost overruns is change fees. The buyers can change the tile and the flooring they picked, but the builder will charge them the cost of materials, labor, plus a change fee. Advise your buyers of these facts upfront so they can minimize these costly additions.

Property tax sticker shock

I was surprised to learn that the property tax rate in Teravista was about 10 percent higher than the most expensive rate in central Austin. Apparently this rate is common in other outlying areas as well. Part of the reason is that cities need the money to build new schools and other infrastructure.

Property tax sticker shock can come as a real surprise for someone locating from other places in the country. For example, a buyer from California might buy a $350,000 home expecting to pay about $4,200 per year in property taxes. If the property tax rate in Round Rock is 3 percent, one’s tax bill would be $10,500. It is critical that you advise your buyers of these facts so they can account for the higher taxes in their budgeting.

Comparing builders

If your buyers are considering two or more builders, do your homework. Begin by visiting previous subdivisions where these builders have built in the past. As you drive through the area, notice which homes look good five to 10 years later vs. those that are not wearing well.

For example, when we built our current home, we had a choice between two builders. While both builders offered attractive floor plans, one builder was about 20 percent more expensive. We went with the more expensive builder because its finished product appeared to be much higher quality.

Six years later you can really see the difference. The stucco in the less expensive homes is fading and cracking. Many of the properties have had serious problems with water penetration from the roof and elsewhere. This is a major concern because of the high potential for mold.

Another issue is that the less expensive homes were insulated with something that looked like black roofing paper and chicken wire. The more expensive homes were wrapped with the highest-quality insulation available at that time. This translates into much higher heating and cooling costs for the owners of the less expensive homes.

While our neighbors have had difficulty getting the builder out to do work after they closed on their purchases, our builder’s response team eagerly tackled what minor problems we did have.

While you may not know what’s inside the walls, looking at the exteriors and talking to agents/owners who know the areas can give you a pretty good idea as to what the builder’s reputation is. More importantly, when you’re reselling these houses, it’s good to know whether your buyer is getting a high-quality house from a high-quality builder or one that will be a nightmare in terms of maintenance and upkeep.

Landon Homes: a new kind of homebuilding company

One that celebrates the thoughts, lives and desires of each homeowner; to build their home right the first time and integrate a commitment to excellence on every level.

Landon Homes is a locally owned and staffed new home construction company in Northeast Florida that is committed to a personal, hands-on approach to building homes. Our goal is to not only build an exceptional home, but also deliver an memorable homebuilding experience for our customers. Communication, honesty, integrity, a commitment to doing it right, and creating a relationship that extends beyond the home sale and closing are our top priorities when helping homeowners discover their dream home. Once in their new home, homeowners can rest assured that we will stand behind our product long after the sale.

It is pretty easy to forget the significance to new homebuyers of pouring the slab or standing the walls of their home. What is just another day to those in the industry is a major event to the family who will ultimately call this house their home. Our team at Landon Homes remembers, and keep that in perspective. Home is where your daughter takes her first steps, loses her first tooth, or your son learns to ride his bike on two wheels. We are very privileged to build the homes where these memories will take place.

So, our philosophy is simple - Do the right thing even when no one else is watching. If it is wrong, fix it. One size doesn't fit all. Build the best home for the money. And most importantly, listen to our customers and do our best to build a great house while making the process a great experience.

How to Unpack Boxes Without Losing Your Mind

As the rumble of the moving truck fades in the distance, the reality of unpacking begins to rear its ugly head. Even though you know that life in your new home can't start until you unpack the boxes, that doesn't make the job any less intimidating. Take heart, determination and a hint of organization will make the entire thing a distant memory in no time.

Unpacking Made Simple (Or at Least Simpler)

Don't Wait

The longer you wait to begin unpacking, the less energy you have, so get moving! Avoid the soul-sucking experience of looking at full moving boxes day after day. Your mood will improve if you keep telling yourself that each empty box brings you closer to making your new house a home.

Prioritize

Start with the rooms you use the most: kitchen, bathrooms and bedrooms. Unpacking these rooms first will get you functional quickly. Being able to rest, stay clean and get something to eat will help you keep your energy up as you unpack boxes in the rest of the house.

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 Next Step: Get Settled

Unpacking seems daunting. But you can started to settle into your new home with a few easy methods. 

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Use Your Packing Checklist

You did make one, right? If not, our downloadable Packing Checklist will be a handy companion during your next move! Check off each box on your packing checklist as you unpack it, and as the checkmarks start to stack up, you'll get that warm fuzzy feeling of accomplishment. If you find damaged items, make sure to note them and contact your moving company as soon as possible. 

How Did THAT Get in There?

As you packed, you probably got rid of a bunch of things you didn't need. Since you're unpacking anyway, why not give your stuff another once over?Create "discard" and "donate" piles and lighten your load some more. Besides, the more things you get rid, the fewer you'll need to find space for.

Safe Haven

Unpack and set up your bedroom as soon as possible. Once the bedroom is finished, keep other boxes and unpacked items out; this is your place to relax and escape from the tensions of unpacking.

Deboxify

As you unpack boxes, break them down and get them out of the way. If you're recycling, stack them neatly where they won't get wet or dirty. Getting moving boxes out of the way is a great visual symbol that you're making progress.

Author: Gene Rodriguez III

How to Pack for a Move

Even if you can't wait to get into your new home, packing for a move can be a daunting task. If you plan ahead and give yourself plenty of time, however, packing can be a piece of cake. Well, at least it can be less painful than a root canal.

Pack for a Move Like a Pro

Like most big projects, the key to packing for a move is to get organized with a packing list, stay on task and break the project down into manageable tasks. The following packing tips will help you get started:

Move Lighter

Before you even think about packing for a move, go through your entire house and collect up all the things that you don't need. Sort these items into "discard," "donate," "sell" and "give away" piles. Lightening your load will save you time, money and effort.

RELATED: [Video] Home Inventory & Color Coding

Start Early

Begin collecting packing supplies and planning your strategy at least a month in advance. Get a small notebook and devote a page to each of the rooms in your house. As you pack, you can number the boxes you fill and list them on the appropriate page. Creating a detailed packing list will make unpacking a little more bearable. You should also begin packing (and cataloging) rarely used items as soon as possible.

For added ease, download our writable packing list. Keep a record of labeled boxes and their content right on your computer, or print out the chart and stay organized the old fashioned way!

Author: Gene Rodriguez III

Landon Homes has Move-in ready Custom Homes for sale?

From Jacksonville to St. Augustine, Duval County, Flagler Beach County or St. Johns County: Landon Homes Custom Home Builder has beautiful, move-in ready homes, just waiting for you to call home. Give us a call today at (904) 567-3430 or click here to Get Started Today

Mardi Gras Celebration at Landon Homes' Adams Lake

 was held on Tuesday, March 11, 2014. The event was a huge success, a ton of fun with the photo shoot, and delicious food. Thanks for all of the Real Estate offices that came out to visit us. Congratulations to the winners of the gift cards (provided by Prime Lending, Fidelity, Academy Mortgage, and our Sales Team Mary Spears and Kay Hall): Debbie Strickland with HR Realty; Joan Goldsmith; Diane Cook with Exit Realty; Reggie Arline with Action Realty of Northeast Florida; Margir Walker with Watson Realty; Barbara Cockrell with Buie Realty; Kristian Aalberg with 1st Choice Real Estate; Ron Smith with Exit Realty; Gary Wade with Harris Real Estate; Paul Fuentez with Florida Homes; Pamela Welch with Island Realty; Tony Woodfin with Keller Williams; Jesse Austin with Island Realty and David Cook with Cool Realty.