Blog - Deidre Pfeifer

Spring DIY Projects: How to Build a Treehouse That the Kids Will Love

March 20, 2015 by Deidre Pfeifer

Spring DIY Projects: How to Build a Treehouse That the Kids Will Love If you have children, no home is complete without a treehouse. Besides the fact that treehouses provide kids with hours of entertainment, they can also confer ancillary benefits that are hard to quantify. For starters, treehouses can improve property values by boosting curb appeal. When building any type of treehouse, keep the following tips in mind.

Location, Location, Location

Before you head off to Home Depot and get all the necessary supplies, you need to spend some serious time storyboarding the build process. Pick a tree with low, sprawling branches such as an oak or a maple. Furthermore, consider issues like wind, shade and privacy before you start to nail up supports.

Choose Your Materials Wisely

A treehouse built with subpar materials will fall short in the longevity department and disappoint the kids. Pick out stout oak 4×4 posts for the structural elements and top them off with pressure-treated pine for the floors and railings. Use quality plywood for the interior walls and seal it to avoid rot.

Make Multi-Use Your Mantra

Treehouses that are simply shacks suspended above ground will quickly bore youngsters no matter how well-built they may be. Incorporate elements such as swings, rope ladders and even zip-lines to get more from your treehouse. As long as you’re putting in the effort, you might as well add all of the bells and whistles.

Bake Safety Into the Recipe

You don’t want the kids to get hurt when they’re frolicking among the branches. Make sure to bolt handles and permanent rails into the truck so that adolescents are less likely to slip and fall. If you want to go all out, add a few safety nets around the edges.

Heed Aesthetics When Designing

An unadorned treehouse quickly turns into an eyesore over time as it’s battered by the elements. Shingle the roof and paint the exterior walls so that they match your home. Kids will naturally gravitate towards a treehouse that looks appealing and your neighbors won’t complain about a shoddy structure in your weeping willow.

It’s More Than a Treehouse

While many young kids will no doubt love a full-featured treehouse, it’s usually the improvement in home value that will appeal to adults. If you’re interested in learning more about homes in your area that would support your desire to build a treehouse, call a professional real estate agent today.

FOMC Statement: Federal Reserve Discusses Rate Increase, but Concerned About Growth

March 19, 2015 by Deidre Pfeifer

FOMC Statement: Federal Reserve Discusses Rate Increase, but Concerned About Growth The post-meeting statement of the Federal Reserve’s Federal Open Market Committee indicated that while the Fed is considering raising its target rate as early as June, the agency is in no hurry to cast anything in cement. The statement cited stronger labor markets and low unemployment rates as encouraging, but noted that FOMC members remain concerned about economic growth due to low inflation failing to meet the FOMC goal of two percent.

15 of 17 Federal Open Market Committee members said that they expected interest rates to increase before year-end, but downwardly revised forecasts of how high rates might be raised. Committee members further expressed concerns about economic growth and inflation, which is likely to impact Federal Reserve decisions about raising interest rates or not.

Economic Growth, Inflation Slower than Expected

The FOMC statement noted that economic growth has “moderated somewhat”, which was less enthusiastic than in January, when the Fed noted solid economic growth. The Fed revised its projections for the national unemployment rate from December’s expected range of 5.20 to 5.50 percent to 5.00 percent to 5.20 percent.

The target federal funds rate remains at a range of 0.00 to 0.250 percent and is expected to increase to 0.625 percent by year-end, and forecasted to reach 0.875 percent by the end of 2016. The target rate is expected to rise to 1.25 percent at the end of 2017.
Raising the target federal funds rate would impact mortgage rates, rates on vehicle loans and corporate loans. As the cost of loans rises, and wages stay relatively flat, consumers will have less cash for discretionary spending and may put off buying homes and purchasing big-ticket items that require financing.

Fed Chair Says Fed Isn’t “Impatient” about Raising Rates

After the FOMC statement was issued, Fed Chair Janet Yellen gave a press conference. Asked about the FOMC removing the word “patient” from its description of the committee’s attitude about raising the target federal funds rate, Chair Yellen said that removing the word patient does not mean that FOMC members are impatient about deciding when to move on interest rates.

Chair Yellen reiterated what’s she has said many times in recent FOMC statements and press conferences, that although the committee may project when it will raise rates, the decision will be based on incoming economic data.

In her opening remarks, Chair Yellen said that when the Fed does raise its target interest rate, the FOMC will retain a “highly accommodative” stance in line with the FOMC’s dual mandate of achieving maximum employment and a target inflation rate of 2.00 percent.

All in all, this FOMC statement and Fed Chair Janet Yellen’s press conference revealed no great changes in the Fed’s stated policy over the last several months. While low unemployment rates are prompting the Fed to consider raising the federal funds rate, no date for doing so has been set; the agency will provide plenty of advance notice before it raises rates and in the meantime will closely monitor domestic and global financial and economic developments for guidance in deciding when to raise rates.

Spring Cleaning: Follow Our Handy Guide to Organizing Your Garage, Basement and Attic

March 18, 2015 by Deidre Pfeifer

Spring Cleaning: Follow Our Handy Guide to Organizing Your Garage, Basement and Attic Spring is not far off, and your garage, basement and attic need your attention. From sweeping cobwebs to throwing out old, useless junk and organizing family photos, spring cleaning is essential to keeping a tidy house. Follow our handy guide to organizing your garage, basement and attic.

Make Room For Your Car

You’ll likely need to set aside a full weekend to organize your garage. As you won’t be able to complete this task by yourself, get your family or friends to help you out. It might be a good idea to bribe them with free pizza for lunch.

Go through every square inch of the garage from top to bottom, including tools, unpacked boxes from when you moved and anything else that gets in your way. Separate the items that you want to sell or donate into one area of your driveway, items that you want keep into another area and stuff that you want to throw away into a separate pile.

Organize the items you want to keep into small, well-marked boxes and place back in the garage. Use as much wall space as possible to store tools and boxes by installing shelves inside your garage. Organize the items you want to sell into separate piles on a tarp in your garage for temporary storage.

De-Clutter Your Basement

Similar to your garage, you’ll want to get rid of the clutter in your basement. Make sure you have enough room for multiple piles of items and be aware that you’ll need to add to your garage piles later on.

Organize your items into three piles: one pile for items you wish to keep, another one for items you wish to sell and the final pile for items you want to throw out. If you have a significant amount of clothing in your basement, you might want to consider purchasing mobile hanger units and place them against the wall.

Turn Your Attic Into An Inviting Room

Your attic doesn’t have to be a storage space if you can clean it up and organize it correctly. Place everything you want into marked boxes and dust the attic before you place them in their respective areas.

Selling and throwing away personal belongings can be a huge hassle, especially if you have an emotional attachment to them. Generally speaking, items that are broken, expired or out of date can be thrown away while items that you no longer use but don’t hold much sentimental value can be sold or donated.

Tax Time 2015: How Buying a New Home Can Impact the Amount of Tax You’ll Pay

March 17, 2015 by Deidre Pfeifer

Tax Time 2015: How Buying a New Home Can Impact the Amount of Tax You'll Pay Few people consider the tax implications of buying a home, but there are many. Here are a few ways buying a home can impact the amount of tax you pay.

Mortgage Interest

Most people put down the minimum amount of money needed to buy a home and finance the rest, usually over 30 years. This means that, especially in the early years of the loan, most of what they are paying are the finance charges. The good news is that all that interest is tax-deductible for people who itemize their deductions, which adds up to several thousands of dollars in deductions annually. You also can deduct interest on home equity loans, up to a certain amount.

Property Taxes

Another way that buying a home affects your taxes is property taxes. In most jurisdictions, property taxes are based to some extent on the price you pay for your home, meaning the more you pay, the higher your taxes will be. The positive is that, just as with mortgage interest, those property taxes you pay are deductible if you itemize deductions on your income tax return.

Points

Points are up-front fees you pay to lower the interest rate on your home mortgage. If you paid them when buying your home, you can deduct the entire amount on your tax return. If you paid points on a refinance or home equity loan, you have to deduct them a bit at a time over the entire term of the loan.

Tax-Free Appreciation

One of the reasons many people treat homes as an investment is the favorable tax treatment on profit from a sale. For example, in the United States as long as the home is your principal residence for at least two years out of the five years before you sell, you can exclude up to a $250,000 gain from capital gains taxes, or $500,000 if you are married.

Retirement Accounts

Buying a home for the first time is one of the few situations in which the government allows you take money from retirement accounts early without paying a tax penalty. For example, you can take up to $10,000 out of an individual retirement account without having to pay the early withdrawal penalty, although you still might face income taxes if your contributions were tax-deferred.

If you are considering buying a home, contact a real estate professional to discuss the potential tax and other benefits.

What’s Ahead For Mortgage Rates This Week – March 16, 2015

March 16, 2015 by Deidre Pfeifer

What's Ahead For Mortgage Rates This Week March 16 2015 Last week’s economic reports included job openings, retail sales, retail sales except automotive, consumer sentiment for March and the usual reports on weekly jobless claims and mortgage rates.

Job Openings Highest in 14 Years

The Labor Department reported that job openings reached their highest level in 14 years in January, and rose by 2.50 percent over December 2014 job openings. On a seasonally adjusted basis, there were five million job openings in January. Job openings rose by 28 percent year-over-year.

Hiring rose by 3.50 percent to 5.24 million, but analysts said that employers continue to have difficulty in finding workers with skills needed to fill their job openings. Winter weather was also mentioned as contributing to lower hiring rates.

Stable full-time employment is a key requirement for qualifying for a home loan. Inconsistent, part-time and self-employment typically make it more difficult to qualify for mortgages in today’s conservative lending environment.

Retail Sales Lower

Retail sales fell by –0.60 percent in February against an expected reading of +0.30 percent and January’s reading of -0.80 percent. This was the third consecutive drop in retail sales volume and suggests that consumers are not confident about spending. Retail sales except automotive were also lower with a February reading of -0.10 percent against an expected reading of +0.40 percent and January’s reading of -1.10 percent.

Mortgage Rates Rise, Weekly Jobless Claims Fall

According to Freddie Mac average mortgage rates rose across the board with the rate for a 30-year fixed rate mortgage at 3.86 percent, an increase of 11 basis points. The average rate for a 15-year mortgage rose by seven basis points to 3.10 percent. The average rate for a 5/1 adjustable rate mortgage rose five basis points to 3.01 percent. Discount points were unchanged at 0.60 percent for fixed rate mortgages and 0.50 percent for a 5/1 adjustable rate mortgage.

Weekly jobless claims fell to 389,000 against expectations of 310,000 new jobless claims filed and the prior week’s reading of 325,000 new claims filed. This was good news after a spike in new jobless claims that was likely caused by bad weather. Although week to week data tends to be more volatile than month-to-month trends, there was good news in that new jobless claims fell below a benchmark of 300,000 new claims filed. Readings of 300,000 or fewer new jobless claims filed represent strong labor market conditions.

What’s Ahead

This week’s economic reports include the NAHB Wells Fargo Housing Market Index, federal reports on housing starts and building permits and the Federal Reserve’s FOMC meeting statement. Fed Chair Janet Yellen is scheduled to present a press conference, which analysts will watch closely for any indication of when the Fed will raise interest rates.

Three Inexpensive Makeovers That Will Boost Your Home’s Appeal to Young Buyers

March 13, 2015 by Deidre Pfeifer

Three Inexpensive Makeovers That Will Boost Your Home's Appeal to Young Buyers When preparing to list your home for sale, you may be wondering who will buy your home. While this initial thought may be one spurred by curiosity, the fact is that understanding who your target audience is and what they are looking for in a home may help you to position your home to sell more quickly and for a better price. If you have determined that there are many younger buyers moving into your area, you may want to make a few changes that will add appeal to this target audience. While you could spend tens of thousands of dollars or more completing a home makeover, there are a few budget-minded ideas that you may consider.

Add Color to Molding and Trim

One of the hottest trends in home décor and interior design is to get rid of the standard white trim and molding and to add color to these areas. Neutral hues like grays and browns have universal appeal, or you can give your space a more contemporary look by adding black to these areas. Generally, you will want a more neutral color like a creamy beige on the walls when executing a look with colored trim.

Update Light Fixtures

If you have a little more money to spend, you may consider updating your light fixtures. There are rather affordable yet stylish fixtures available in a wide range of finishes. When your rooms are empty or staged to perfection, the light fixtures can easily set the tone of the room and may be focal points. Outdated fixtures may have limited appeal to young buyers who are looking for a home that is modern and current with today’s trends.

Redefine Outdated Spaces

In some older homes, some of the rooms may have originally been built with outdated uses in mind. Today’s younger buyers may be looking for a home with an exercise room, a media room or a study rather than a formal living or dining area. With this in mind, you may consider how you can stage your home to show that it can be used for modern purposes. This may simply mean moving your formal dining room set into storage, adding French doors and investing in an affordable desk and side chairs for staging purposes. This is just one of several options available that may give your home broader appeal to a younger audience shopping for a modern floor plan.

If you are thinking about listing your home for sale and you believe that you will likely attract younger buyers to your home, you can consider implementing some of these ideas in your space. Your real estate agent may be able to offer additional suggestions that are customized for your specific home.

Taking an Extended Vacation? Renting Your Home to Long-term Tenants is a Great Option

March 12, 2015 by Deidre Pfeifer

Taking an Extended Vacation? Renting Your Home to Long-term Tenants is a Great Option Taking an extended vacation can seem like a dream come true. You may have plans to spend your summer in Europe, your winter in the Caribbean or even a full year or longer exploring a different region. If you have the luxury of taking an extended vacation, you may have your sights set on adventure and relaxation.

However, you also need to consider the practicality of leaving behind your home and belongings for an extended period of time. A great idea is to take on a long-term tenant for your home, and there are a number of benefits that you can enjoy by doing this.

Generate Income From Your Home

When you lease your home to a long-term tenant, you will be able to generate a monthly income from the property. This can be used to pay for your mortgage, property insurance and other related expenses while you are gone. Essentially, it can make it more affordable for you to take your trip for an extended period of time.

Decrease Your Maintenance Expenses

When you are away from your home, you may still have maintenance and upkeep chores to do. When you are home, for example, you may easily be able to water your lawn and mow the grass on your own. You may deal with a leaky pipe before it becomes problematic and causes considerable damage to the home. When you are gone, you may need to pay for a lawn service, and you have nobody to watch over the interior of the home. However, when you lease your home to a tenant, the tenant may be responsible for caring for the yard. In addition, he or she can alert you to issues that develop inside the home.

Someone to Keep an Eye on Your Property

When a home appears to be vacant, it is more likely to be vandalized or burglarized. A tenant will give your home an occupied look and will decrease the risk of criminal activity. In addition, the tenant may change your air filters, replace batteries in the smoke detectors and take other steps to keep the home in great condition for you while you are gone. You can specify your requirements in the lease.

If you are planning an extended vacation and you are looking for a convenient way to ensure that your home is taken care of while you are gone, consider the benefits of taking on a long term tenant. You can speak with a real estate agent to learn more about the market rental rate for your home.

Buying and Selling a Home at the Same Time? How to Juggle These Two Transactions

March 11, 2015 by Deidre Pfeifer

There are few things that can be more stressful than buying or selling a home. When you are buying and selling a home at the same time, your stress level may understandably skyrocket through the roof. There may be financial aspects of both transactions that may be cause you stress, and you may be dealing with logistical issues or simply feel stressed by the stacks of documents piling up for both transactions. While this will inevitably be a challenging time in your life, you can more easily navigate through the transactions with success by following a few tips.

Consider the Timing of Both Transactions

One of the best things you can do when buying and selling a home at the same time is to plan ahead and consider the timing of both transactions. You may get lucky enough to get an offer on your home from a buyer who wants to close just a few days before you close on your new home. However, it is more likely that these two transactions may be finalized weeks or longer apart from each other. You may need to plan on finding an interim home or paying double mortgages for a period of time. You may consider which of these two options is more preferable to you based on your work situation, your family’s needs and your budget.

Prepare a Budget Ahead of Time and Update It Periodically

Financial stress can mount during this period of time. You will need to make a good faith deposit and pay for third party reports and mortgage application fees for your new home purchase. You may also need to pay money to make repairs and to stage your current home before you list it. It is common to rent a storage unit and to pay for boxes and moving supplies as well.

In addition, a buyer for your current home may request that you make repairs to your home before closing. It is important that you prepare a budget so that you can pay for all of these expenses as they arise, and you should consider leaving yourself ample funds for unexpected expenses. If you run into a cash crunch, consider completing the sale of your current home entirely before going under contract with your new home purchase.

Use the Same Real Estate Agent for Both Transactions

The knowledge and support of a real estate agent can be beneficial to you for both transactions, and you may consider using the services of the same agent for both. Dealing with one person who is familiar with your goals and needs can be truly beneficial to you throughout the entire process, and he or she may offer insight about the best steps to take to make the transition from one home to the other smoother for your family.

While buying and selling real estate can be stressful, you do not have to make the process more difficult than it needs to be. You can set up a time to meet with a real estate agent today to begin discussing your plans and to take the initial step.

All About Radon: How to Test Your Home for Radon Gas and What to Do if You Find It

March 10, 2015 by Deidre Pfeifer

All About Radon: How to Test Your Home for Radon Gas and What to Do if You Find It If you are concerned about the presence of radon in your home, you are not alone. The fact is that radon is an invisible, odorless gas that may be found in buildings around the world. It is a radioactive gas that is emitted from the ground soil as trace amounts of naturally occurring uranium break down. The gas can enter a building and remain trapped, and this is known to cause as many as 21,000 deaths related to lung cancer each year, according to the EPA. Testing your home from time to time is a necessity, and you can easily accomplish this in two different ways.

A Home Radon Test Kit

Regardless of the age or location of your home, you should test your home periodically for the presence of radon. You may be able to purchase a radon test kit at a local home improvement store or even online. These kits are designed to be easy to use and to read, and they can provide you with the information you seek in a short period of time.

A Professional Indoor Air Quality Test

Another option is to hire a professional to complete a full indoor air quality test. This may provide you with more information about the presence of radon, asbestos, mold spores and many other pollutants and particulates that may be making you and your family sick. A professional test may be more comprehensive and sensitive. Furthermore, the results can be more reliable.

If You Have Radon In Your Home

If you have the unfortunate experience of learning that your home has radon gas inside of it, you may immediately feel stressed and concerned. This is understandable considering this is a known carcinogen. However, while it is important that you take immediate action to cleanse and purify your home’s air, there is not a need to panic. There are numerous filtration and purifier systems that you can invest in that have amazing results. In fact, some can eliminate up to 99 percent of the radon in your home.

Even if your home tests clean for radon today, keep in mind that this gas can naturally seep into your home over time. You may consider testing your home periodically for radon at regular intervals for the entire time you live in the space. This will help you to identify a problem in your home and to take action soon to minimize the health risks for you and your loved ones.

What’s Ahead For Mortgage Rates This Week – March 9, 2015

March 9, 2015 by Deidre Pfeifer

What's Ahead For Mortgage Rates This Week March 9 2015 Last week’s economic news was light on housing related reports, but several employment reports were released along with the national unemployment rate, which dipped to 5.50 percent. This was a full point below the Federal Reserve’s original target rate of 6.50 percent. Construction spending was incrementally lower than expected and mortgage rates also fell.

Fewer Private-Sector Jobs, Non-Farm Payrolls Increase

The ADP employment report for February fell from January’s reading of 250,000 jobs to 212,000 private-sector jobs. January’s reading was upwardly revised from the original tally of 213,000 jobs added. News was better for Non-Farm Payrolls for February. The Labor Department reported that 295,000 jobs were added; analysts expected a reading of 238,000 new jobs based on January’s original reading of 257,000 jobs added, but January’s reading was revised to 239,000 jobs added. The Non-Farm Payrolls report includes both public and private-sector jobs.

Weekly jobless claims rose to 320,000 against expectations of 301,000 new claims and the prior week’s reading of 313,000 new jobless claims. The week-to-week jobless claims report is considered volatile; most analysts base forecasts on a four-week rolling average.

National unemployment decreased from 5.70 percent in January to 5.50 percent in February as compared to an expected reading of 5.60 percent. February’s reading was the lowest since May 2008. Construction added 29,000 in February, which could indicate a boost in home construction. The unemployment rate does not account for 17.50 million workers who work part-time but want full-time work and those who have left the job market. The labor market participation rate fell to 62.8 percent, which was its lowest since the late 1970s.

Analysts said that based on the lower unemployment rate, the Fed may move as soon as June to raise the target federal funds rate to prevent rapid inflation, but Federal Reserve policy makers have consistently cited concerns over labor markets as a reason why the fed funds rate hasn’t been raised. A combination of stagnant wages, higher mortgage rates combined with stubbornly strict mortgage credit requirements could cause housing markets to lag behind other economic sectors until would-be home buyers achieve steady employment and can qualify for home financing.

Mortgage Rates Drop

Freddie Mac provided good news as average mortgage rates dropped. Last week’s rate for a 30-year mortgage was 3.75 percent and lower by five basis points; the average rate for a 15-year fixed rate mortgage dropped by four basis points to 3.03 percent and the average rate for a 5/1 adjustable rate mortgage was three basis points lower at 2.96 percent. Discount points were unchanged at 0.60 percent for fixed rate mortgages and 0.50 percent for 5/1 adjustable rate mortgages.