This week, we review the financing options and the mortgage process for new home purchases. While loans have become more difficult to obtain in recent years, being prepared will greatly increase your chances of getting financing with the terms you want.

*KNOW YOUR CREDIT SCORE Get your credit report – everyone is entitled to one free credit report per year (visit annualcreditreport.com or call (877) 322-8228). Make sure there are no mistakes in your report, and dispute any you find. It can take a month or more for your report to reflect corrections, so don’t wait to fix errors!

*ANALYZE YOUR FINANCIAL SITUATION Determine how much you can afford to spend – and are willing to spend – every month on a mortgage. A general rule of thumb is to expect to spend NO MORE than a third of your gross income on your mortgage payment – and remember, the smaller the percentage of your income that you devote to the mortgage, the easier your finances will be during the tough times (medical bills, lay offs, etc). Don’t forget to determine how much of a downpayment you can afford! Expect to need a downpayment of between 5% and 20% of the purchase price – the more money you put down initially, the less you have to pay interest on later.

*COMPARE RATES, TERMS, AND FEES Compare many lenders and rates to find the right fit for you and your situation. Be sure to add up all the costs so that you are making fair comparisons – include all fees, points, and closing costs in your estimates. Potential lenders should give you a Good Faith Estimate (GFE) within three days of your application which details all the costs—but this is only an estimate. If you can get your lender to “lock in” fees and rates, all the better! Finally, be sure that you explore all your options: savings and loan associations, credit unions, local banks, major lenders, stock brokerages, mortgage brokers, and FHA and VA programs. Each have their advantages: for instance, local banks know the area, the building practices, and tend to be easier to contact, while major lenders may be able to offer more competitive rates, and federal programs may offer lower downpayment requirements.

*BE PREPARED TO PROVIDE DOCUMENTATION Lenders need to know that you can afford to make the payments and that you intend to

Lets Make a Deal!

 make the payments, so you need to provide evidence that you have a steady income and a history of making payments in full and on time. This means that, in addition to proving your identity by providing your full legal name, Social Security number, and date of birth, you will also be expected to furnish at least two years of tax returns and income, employment, and residence history, as well as at least two months of bank statements and pay stubs. You may also need to provide investment earnings reports, divorce or child support decrees, proof of insurance, or documentation of any other assets or liabilities that could affect your ability to make your payments.

The B.O.L.D. Company is uniquely situated to help you through each and every step of the custom home building process, from financing and design/selections to construction and warranty service. We are available to build on your lot in Northern Kentucky, or let our licensed real estate agents help you find the perfect home site! Our in-house drafting and design team, together with our on-staff licensed Professional Engineer, can help you find or design the plan of your dreams! And of course, B.O.L.D. combines quality products and craftsmanship with unsurpassed customer service, so that the finished home is everything you expect and more. Find out why 400+ other new home customers have trusted The B.O.L.D. Company since 1986!

 Last week, we looked at creating outdoor living spaces with porches, decks, and patios.  This week, we take that idea a step further.  Dress up your porch, deck, or patio by stocking a complete outdoor kitchen!

The convenience of an “outdoor kitchen” means dining and entertaining outside without having to continually run back inside for utensils, condiments, or food that is cooled by the time it reaches the table.  You also avoid potentially dirty shoes tracking from porch to kitchen.  An outdoor kitchen provides everything you need right where you need it!

The most basic (and most budget-friendly!) outdoor kitchen might include simply a grill and an outdoor bar–somewhere to house drinks and snacks for the evening, for the convenience of guests.  For a little bit bigger investment, some bar stools and also cabinet space to allow storage of plates, napkins, and utensils, would dress up the space.

Upgrading the outdoor bar design to an outdoor kitchen would consist of a built-in grill with a miniature sink and a small counter space for food preparation.  More elaborate outdoor kitchen designs might include a dishwasher, a refrigerator, an oven, or even a television set for watching the big game!  Some designs also include an outdoor fireplace or fire pit, to make their outdoor entertaining more of an all-season facility. 

All of these items would need to be installed or covered in such a way as to protect them from the elements, however.   Keep in mind:

*Flooring – avoid flooring that would become dangerously slippery when wet.

*Hot or wet surfaces – any part of cabinets or countertops that would be exposed to heat from the grill, or to rain or even direct sunlight, will need extra protection, such as backer board covered with stone veneer, or will need, at least, to have a sealer applied. 

*Lighting – avoid accidents by including sufficient lighting for walkways, food preparation areas, and dining areas. 

*Shelter – don’t be run out of your outdoor space when the sun is too bright or the air too chilly.  Prepare for the conditions you expect to face, whether it is by including simply a patio umbrella or a complete pergola-with-plexiglass-panel roof; or maybe a stone-faced outdoor fireplace for warmth, or even just a portable outdoor patio heater.

B.O.L.D. Homes, a B.O.L.D. company, has been established as among the premiere Greater Cincinnati / Northern Kentucky custom home builders since 1986. We have well over 500 customer designed homes to our credit. Work one-on-one with the owners of the company – including a licensed real estate broker, a licensed real estate agent, a licensed professional engineer, and a CAD draftsman/designer – to design your dream home full of the features important to you. We can help you find a balance between luxury and budget.

 This week, we look at outdoor living spaces:

 Outdoor living spaces add value and open-air living and entertaining space to your home. From decks to patios, covered porches to screened porches, there are outdoor living options for every budget.

 PATIOS

The most basic type of outdoor living space is the patio. With a floor of poured concrete, brick pavers, or stone, patios are inexpensive to install and very easy to maintain. Patios provide a place for outdoor entertaining, dining, grilling, sun bathing, or for installing a hot tub.

 –Special features to consider for your patio:

Stamped concrete – Concrete can be customized to resemble just about any type of material: brick pavers, cobblestones, wood, etc. By “stamping” patterns and textures and adding color, you can have a “brick paver” patio that won’t allow weeds to grow between the pavers, or a “cobblestone” patio that won’t succumb to heaving of the frozen ground underneath.

Patio cover – To provide shade to a patio, consider adding a pergola, arbor, or patio cover to your design. Common materials for covers include wood, synthetic wood, aluminum, or fabric. They can be solid and provide maximum shade (in the case of a roof cover of aluminum or fabric), or they can provide partial shade (in the case of a pergola or arbor).

Gas hook up – Instead of having a propane tank for your gas grill, install a gas line hook up out to your patio!

 DECKS

 Decks are also a fairly inexpensive way to expand the living space of your home. A deck, however, can be built to accommodate damp or uneven ground where a patio cannot, and it can be built at ground level or higher. Often, a deck is built in conjuction with a patio – a deck creates shade for a patio below. Decks can be built from pressure-treated wood, redwood, cedar, or composite decking. Some composites are made from recycled materials, which can be a more eco-friendly product, and good composites are more easily maintained than a typical wood deck.

 —Special features to consider for your deck:

Deck cover – To provide shade to a deck, consider adding a pergola, arbor, or deck cover to your design. Common materials for covers include wood, synthetic wood, aluminum, or fabric. They can be solid and provide maximum shade (in the case of a roof cover of aluminum or fabric), or they can provide partial shade (in the case of a pergola or arbor).

Gas hook up – Instead of having a propane tank for your gas grill, install a gas line hook up out to your deck!

Door/stairs – decks can be designed like a balcony – where the only entryway is from the house, or they can built with an additional entryway to/from the yard. For decks built off the ground, this will include stairs.

 PORCHES

 Covered porches are a part of the design and foundation of the home, compared to a deck or patio which is an extension added on to the home. Covered porches, while allowing light, open-air, and breezes, also provide greater protection from the elements than would a regular patio or deck. As you might imagine, covered porches tend to be more expensive than patios and decks, and must be planned for from the beginning of construction.

 Screened porches provide an even greater level of protection from the elements – while light and rain and air can get through the screens, bugs cannot.

 Sun porches provide the greatest level of protection from the elements – surrounded by glass windows, light but not air can get in (unless the windows are open).

 –Special features to consider for your porch:

Ceiling fans – Move the air around on a hot day with a ceiling fan.

High ceilings – A vaulted ceiling in a screened or other porch will give rising hot air somewhere to go other than where you are sitting

B.O.L.D. Homes, a B.O.L.D. company, has been established as among the premiere Greater Cincinnati / Northern Kentucky custom home builders since 1986. We have well over 500 customer designed homes to our credit. Work one-on-one with the owners of the company – including a licensed real estate broker, a licensed real estate agent, a licensed professional engineer, and a CAD draftsman/designer – to design your dream home full of the features important to you. We can help you find a balance between luxury and budget.

This week, we look at kitchen design ideas:

With the growing popularity of open floor plans, the kitchen has become more of a focal point than in generations past: the kitchen is a place to entertain, and thus, a focus of style and decorating, in addition to retaining its more practical purposes.

Designers have two methods of addressing this dilemma: (1) decorating around customized or high-end appliances that you’ll be proud to show off; or (2) hiding the appliances with custom cabinetry.

“Showy” appliances include high-end stainless steel varieties, those with copper trim or accessories, or professional grade appliances. The latter can serve a dual purpose if you do a lot of cooking, catering, or entertaining.

There are many things you can do to make your appliances “blend in”, or to hide them altogether. Increasingly, appliances are available with changeable front panels to match the cabinetry color and style (think of a dishwasher or trash compactor front panel). Custom cabinetry can make other appliances “disappear.” Drop doors, “roll top” doors, and sliding doors make good cubby holes for small appliances, such as toasters, coffee makers, and blenders. A “microwave cabinet” hides the clunky white or black box. Even the refrigerator can have “armoire” style doors designed to open and close around its space. Built-in refrigerators and dishwashers blend even more easily. Refrigerated drawers can hide within the island, for instance, or a built-in refrigerator can sit atop freezer drawers below.

After the cabinets, the second most noticeable surface in the kitchen is the countertop. Today’s countertops must be both practical and showy. Durable and stylish options are readily available for every budget.

The economical choice is a laminate top, such as those made by Formica or WilsonArt. Available in a wide range of colors, designs, and styles, you can find laminates that mimic just about any kind of natural surface. The disadvantage is that laminates crack or chip fairly easily, and repair of this damage is not so easy.

Ceramic tile is very durable, and it is one of the few do-it-yourself options for kitchen tops. The necessary grout between tiles can be difficult to keep clean, however, and it must be regularly sealed in order to resist moisture.

Solid surface acrylics are becoming increasingly popular for their durability, non-porous water resistance, easy scratch repair (just sand and buff out), and their wide arrange of colors, designs, and styles. Products such as Corian and Avonite produce a good product for a competitive price, making solid surface acrylics a great middle-of-the-road price option.

High end natural surface options include granite, marble, quartz, and even concrete. These products are beautiful, but the high cost does not ensure indestructability. Each of these products are prone to cracking, and none (with the possible exception of concrete) will withstand the damage inflicted by a hot pan (but neither will any of the other options, with the possible exception of ceramic tile).

B.O.L.D. Homes, a B.O.L.D. company, has been established as among the premiere Greater Cincinnati / Northern Kentucky custom home builders since 1986. We have well over 500 customer designed homes to our credit. Work one-on-one with the owners of the company – including a licensed real estate broker, a licensed real estate agent, a licensed professional engineer, and a CAD draftsman/designer – to design your dream home full of the features important to you. We can help you find a balance between luxury and budget.

This week, we look at the features that will help you make the most of the square footage you have.  The right layout, lighting, and ceiling height can make a smaller house feel more open and inviting than a larger house, at a lower cost!

Even a large house can feel small.  More important than the actual square footage is the layout, the lighting, and the ceilings. 

• An open floor plan, where rooms flow one to another with fewer walls and barriers, is less likely to have a cramped, crowded feel, especially after the furniture is moved in.  More room for entertaining and no one gets stuck in the kitchen all night!  Check out this BOLD open floor plan:
• Plenty of natural lighting–streaming through windows that are not blocked or shadowed by walls–brightens a room like no artificial lighting can, and also increases the open, airy feel of the space!
  • Natural lighting is environmentally-friendly and absolutely free!
  • Studies show that natural lighting is beneficial to both mental and physical well-being
  • Lots of big windows brings the outdoors in, and windows do not give the same “barrier” feeling that a wall or a door gives.
  • In addition to traditional windows in each room, consider adding skylights to key parts of the home: master suite, kitchen, great room.
    • Enhance the beauty of your home
    • Raise the value of your home with a unique feature not found in standard homes
    • Decrease energy costs
    • Some skylights open for ventilation
    • Some skylights come with blinds or special glass to block harmful rays
    • Skylights do require regular maintenance for the life of the home to prevent leakage.

• To add space without adding to your square footage, raise the ceilings!
  • The standard ceiling height in a home is typically 8 feet.  Just by adding another foot to the height of the ceilings, the rooms feel bigger, brighter, and more welcoming.
• There are other, more room-specific ways to add ceiling height:
  • Tray ceilings are a design effect where the center of the ceiling is recessed — that is, the center of the ceiling is higher than the surrounding ceiling, adding both vertical space and aesthetic value to the ceiling. 

•  
  • Vaulted ceilings have one wall that is taller than the opposing wall and a sloped ceiling that rises from the shorter wall to reach the taller wall. 
  • Cathedral ceilings have a center point which is higher than any of the walls, and equal sloping sides that rise to meet that center point. 

•  
  • Two-story foyers and great rooms are a beautiful way to add space and light to a house.  Cleaning cobwebs, dusting fan blades, and changing lightbulbs 12-16 feet high can be a maintenance challenge, though!

B.O.L.D. Homes, a B.O.L.D. company, has been established as among the premiere Greater Cincinnati / Northern Kentucky custom home builders since 1986. We have well over 500 customer designed homes to our credit. Work one-on-one with the owners of the company – including a licensed real estate broker, a licensed real estate agent, a licensed professional engineer, and a CAD draftsman/designer – to design your dream home full of the features important to you. We can help you find a balance between luxury and budget.

ASK THE BOLD COMPANY FOR MORE INFORMATION ON BUILDING A CUSTOM HOME

The registry will give the public access to the employment history and disciplinary record of all mortgage loan originators.  Those MLOs subject to licensing by the state will also have to submit fingerprints for an FBI criminal background check, authorize release to the licensing agency of an independent credit report, complete at least 20 hours of pre-licensing education courses, pass a written examination, and complete 8 hours of continuing education for each renewal. 

The goals are: increased consumer confidence, consumer protection, fraud prevention, accountability of mortgage loan professionals, and uniformity in training and licensing.

All states are expected to be in compliance with the Act by early 2011.

Contact us at the BOLD Company to discuss your particular situation and opportunities.

EYE  ON  THE  ECONOMY

Moderately Faster Economic and Job Growth Lies Ahead

The economy continued to grow in the second quarter, slowing down from previous quarters and not as fast as economists would like to see it, but it was growth nevertheless, with gross domestic product (GDP) advancing at an annual rate of 2.4%, its fourth consecutive quarterly increase.

GDP grew in this year’s first quarter at a 3.7% pace and in the fourth quarter of 2009 at 5.0%. The concern that this cool down presages a double dip and return to recession seems to be overblown.

First, it is not unusual to see variations in quarterly GDP growth  coming out of a recession. Particularly strong quarters are often followed by weaker ones as growth in sectors responsible for the surge begins to moderate.

Second, although consumers are rebuilding their savings, they are also spending and likely to continue spending.

Third, business investment may be weakening, but it will continue to advance as companies move to take advantage of low interest rates.

Fourth, the federal government is still distributing funds provided under the American Recovery and Reinvestment Act (ARRA). A large share of these funds has been stockpiled by states, which are slowly using them to pay their vendors over time.

Buoyed by the home buyer tax credit, residential construction helped lift GDP in the second quarter, adding 0.6% to the overall growth rate, thanks to improvements in single-family activity and remodeling, with multifamily construction a negative. This was the first positive contribution from this sector since it added 0.25% to growth in the third quarter of 2009, which was the first quarter in two-and-a-half years that home building was not a drag on GDP, a grim reminder of the depth and length of the housing downturn.

Second quarter GDP also received a major boost from business investment in equipment and software, a sign that firms are generally positive about their future prospects.

Companies also continued to build their inventories, another positive for growth, although at a slower pace than in the previous two quarters. The lift from inventory investment will disappear, however, if final demand falters.

The consumer remains cautious, but has not abandoned the marketplace, contributing roughly half of the growth recorded in the second quarter, down from a two-thirds share in normal times. For now, consumers seem unlikely to increase spending given their generally glum outlook.

The University of Michigan Consumer Sentiment Index fell from 76.0 in June to 67.8 in July, its lowest reading since November. The Conference Board  reported a similar drop in its July Consumer Confidence Index, which dropped from 54.3 to 50.4 , its second consecutive monthly decline.

While it is encouraging that businesses and consumers are still active participants in the economy, their growing expenditures in the second quarter led to a large increase in imports, which reduces GDP growth, and this was only partially offset by rising exports.

Ongoing spending by businesses, consumers and the government will produce sufficient economic growth to spur more hiring, which in turn will further buttress consumer spending and aid in housing’s recovery.

As a result, NAHB is forecasting moderately faster economic and job growth over the next few quarters.

Is Housing Improving?

Getting a good read on housing has been complicated in recent months by the lingering effects of the home buyer tax credit and its expiration. The tax credit pulled sales forward as buyers sought to qualify for the credit before the deadline for signing a sales contract at the end of April, leaving the pool of prospective home buyers severely depleted.

Now there is early evidence that market demand is in the process of being restored by historically low mortgage rates and affordable house prices.

New home sales peaked in April at a seasonally adjusted annual rate of 422,000, their highest level since September 2008. In May, they fell precipitously to 267,000, their lowest level since the Census Bureau started reporting these figures in 1963.

Sales in June rebounded to 330,000, an indication that buyers are returning to the market. Although this was a healthy increase, it still left sales at the second lowest level ever recorded. NAHB is forecasting further improvement in coming months as mortgage rates remain low, house prices level out and job growth continues.

Meanwhile, the inventory of new homes fell to 232,000 in June, a level last seen in 1968. Since then, the number of U.S. households has grown by more than 90%. As demand returns, a larger inventory will be clearly needed and bode well for residential construction, dependent upon banks increasing their lending to builders again.

Since their recent peak of 5.06 million In April, sales of existing single-family homes declined 1.6% to 4.98 million in May and 5.6% to 4.7 million in June. This was a bit surprising since the closing deadline to qualify for the tax credit was originally June 30.

The argument for extending the deadline to Sept. 30 was that a crush of credit-related sales had led to a backup and pushed closings beyond June. If this is what actually occurred, then it is a possible explanation for the sales decline in June and suggests that existing home sales should not deteriorate further in July and August as the marketplace adjusts to the fading tax credit.

The National Association of Realtors (NAR) Pending Home Sales Index, which is comparable to new home sales since it is based on contract signings, plunged 29.9% in May and fell an additional 2.6% in June. The index was down 18.6% from a year earlier, roughly in line with a 16.7% year-over-year decline in new home sales in June.

These declines represent the expected adjustment to the expiration of the home buyer tax credit. As we move beyond the tax credit, the true picture of the underlying market will begin to emerge by July or August.

House Prices Find a Floor

Aided by the home buyer tax credit, house prices have stabilized and begun to inch up. The S&P/Case-Shiller 20-city price index has risen in 10 of the last 12 months. On a year-over-year basis, the May index was up 4.6%.

Further, 19 of the 20 cities saw an increase in prices from the previous month on a non-seasonally adjusted basis. Thirteen of the 20 were up on a year-over-year basis, with three of them — San Diego, San Francisco and Minneapolis — up by double digits.

Not quite as rosy, the Federal Housing Finance Agency (FHFA) price index has been up in each of the last three months, although the May index was down 1.1% from a year earlier. Prices were up in seven of the nine divisions of the country in May, but only two were up on a year-over-year basis.

June median new home prices were down a modest 0.6% from a year earlier, while June median single-family existing home prices rose 1.3%.

At a minimum, the home buyer tax credit has helped stabilize home prices and may have given them a bit of a lift.

NAHB is forecasting that house prices will exhibit a mild upward slant during the remainder of this year and throughout next year.

Single-Family Construction Slows, While Multifamily Stabilizes

The combination of the home buyer tax credit, low interest rates and an improving employment picture lifted the value of single-family construction put in place on a year-over-year basis for five straight months through June, when it was up 26.7%. At a seasonally adjusted annual rate, the measure rose for 12 consecutive months until June, when it fell 0.7%, undoubtedly showing the waning effects of the home buyer tax credit.

Multifamily construction spending, on the other hand, showed its first signs of life in June, rising 0.3%, although still down a hefty 52.0% from a year earlier, supporting NAHB’s view that it is bouncing along the bottom as the industry continues to struggle with high vacancy rates and the paucity of financing for new projects. Multifamily construction should be stable for the balance of the year and gradually climb in 2011.

Homeownership Rate Slips

The Census Bureau reported that the nation’s rate of homeownership slipped from 67.2% in this year’s first quarter to 66.9% in the second quarter, its lowest level since the fourth quarter of 1999, a result of foreclosures and continued uncertainty surrounding the housing market.

Homeownership stood at 67.2% in the second quarter of last year. Over the ensuing year, it actually rose in the Midwest — from 70.5% to 70.8% — while in the Northeast it fell slightly from 64.3% to 64.2%. The worst declines — from 70.0% to 69.1% in the South and 62.5% to 61.4% in the West — occurred in regions with the highest foreclosures..

Over the same period, the stock of year-round vacant homes for sale edged up to 1.97 million from 1.9 million. This was an improvement over 2008’s average of 2.23 million, suggesting that this may only be a temporary setback.

Unfortunately, the same cannot be said for the stock of year-round vacant units for rent, which rose to 4.44 million from 4.38 million a year earlier. The large number of available rental units has put downward pressure on rents and dampened financing for the construction of new multifamily rental properties.

Contact us at the BOLD Company to discuss your particular situation and opportunities.

The 30-year fixed mortgage rate fell to a new low of 4.54 percent this week from 4.56 percent last week and an average of 5.25 percent a year ago.

The 15-year fixed loan rate also hit a record low of 4 percent, down from 4.03 percent a week ago and 4.69 percent last year. The five-year adjustable-rate mortgage averaged 3.76 percent, compared to 3.79 percent last week and 4.75 percent a year earlier; and one-year ARMs averaged 3.64 percent, down from 3.7 percent and 4.80 percent, respectively.

Source: The Wall Street Journal, Nathan Becker (07/30/10)

CONTACT US TO DISCUSS HOW THIS BENEFITS YOU.

 This week, we look at some popular feature options for the master suite:

 The typical master suite setup includes both a tub and a shower, either separate or a combination tub/shower unit. Lately, homebuyers have been choosing non-traditional tub and shower units that add elegance and luxury to the suite.

• Soaking tubs   Bathing can have more benefits than simply hygiene. Soaking tubs, in particular, bring to your routine both relaxation and stress release, while soothing aching muscles. Some popular options outside of the standard 5 foot wall-to-wall built-in unit include:
  • Garden These tubs are larger and deeper than a standard tub, and so, better suited to a long soak. They also tend to have a more rounded shape, and are often molded for comfort, with back, head, and arm rests built in.
  • Claw-foot or Pedestal Claw-foot tubs give an antique look to a bathroom, while pedestal tubs can often have a quite modern look. Both of these tubs, like the garden tub, are designed for the bather to lie fully immersed in water
  • Roman/Greek/Japanese Though different names, based on different traditions, the intentions and the results are nearly the same. These tubs are designed to allow the bather to remain fully immersed in water while sitting upright, rather than the traditional Western tub that requires the bather to lie in the water. (For example, think of these tubs as miniature hot tubs, but without the jets.) These tubs can be space savers that fit in spots that standard 5 foot rectangular shower/tub combos do not, because the focus is on depth, not length.
  • Jacuzzi A soaking tub with whirlpool jets is another popular means of bringing luxury home to your master suite. Jetted tubs are readily available for purchase, or jets can be installed into an existing tub.
• Custom showers   Taking a bath is not the only way to relax at the end of a long day.  Those who prefer showers have plenty of luxury options, too:    
  • Size Custom showers are tending to be larger. Purchase a shower enclosure in the shape and size you want, or use tile to surround your shower stall. Gone are the days of the 2.5 ft x 2.5 ft single stall!
  • Entry Shower curtains are still in use, but more commonly, glass doors are installed for the shower entry. Even more trendy are open showers that have no door at all! Imagine having no shower door or shower curtain to try to keep clean from soap-scum and mildew!
  • Showerheads Custom showers rarely have one showerhead at one height. Nowadays, luxury showers have showerheads on either side of an open double-stall shower enclosure. Multiple showerheads can be placed at various heights and can have differing settings. Consider installing a showerhead with a nozzle.
  • Steam shower/sauna Design your custom shower to be a steam shower or sauna, and your master suite will be like an at-home spa! Steam showers and saunas must be completely enclosed to keep in the heat and moisture, and to avoid damage to the rest of the bathroom. While they may also function as a traditional shower, they will generally require additional plumbing and wiring to produce the steam.
• Radiant heating When you step out of your custom bath tub or shower, don’t step onto a cold tile floor! Radiant heating options are available for warming your bathroom floor!
• Towel warmers A nice finishing touch to a custom luxury master suite is a towel warmer, available as a warming rack or a warming drawer. After stepping out of your jacuzzi or steam shower, there is nothing like a nice, warm towel to further soothe tired muscles.

B.O.L.D. Homes, a B.O.L.D. company, has been established as among the premiere Greater Cincinnati / Northern Kentucky custom home builders since 1986. We have well over 500 customer designed homes to our credit. Work one-on-one with the owners of the company – including a licensed real estate broker, a licensed real estate agent, a licensed professional engineer, and a CAD draftsman/designer – to design your dream home full of the features important to you. We can help you find a balance between luxury and budget.

ASK THE BOLD COMPANY FOR MORE INFORMATION ON BUILDING A CUSTOM HOME

Eye on the Economy

Hopeful Signs for Housing Remain

While much of the country is in the middle of the hottest summer in recent memory, residential construction appears to be just entering an early spring — with hopeful signs of more meaningful growth ahead.

At first glance, the June housing starts report appeared to be negative, with activity declining 5.0% to a seasonally adjusted annual rate of 549,000 units, down from a pace of 578,000 units in May. But on closer examination there were some positive signs.

Single-family starts fell a modest 0.7% — from 457,000 to 454,000 — suggesting that they are at or near bottom after dropping off with the expiration at the end of April of the home buyer tax credit, which advanced a significant amount of housing demand into that month.

Although single-family building permits fell 3.4% in June — from 436,000 to 421,000 — this was due to a 7.8% decline in the South; the other regions were either flat (the West) or up slightly (the Northeast and Midwest).

Even multifamily construction, which continues to struggle against forces such as weak rents and the scarcity of financing, provided some basis for optimism. Largely responsible for the drop in total starts in June, multifamily starts fell 21.5% to a yearly rate of 95,000, down from May when they were running at a 12-month high of 121,000.

But the picture is not so bleak when viewed in the broader context of quarterly averages, which remove much of the noise created by the volatile monthly numbers.

Multifamily production in the second quarter proceeded at an annual pace of 111,000 units, which was up 19.4% from 93,000 in this year’s first quarter and up 45.0% from 76,000 in the fourth quarter of 2009.

Meanwhile, multifamily building permits in June jumped 19.6% to 165,000, their highest level since February 2009, from May’s 138,000. On a quarterly basis, permits rose 9.5% to 142,000 in the second quarter, up from 130,000 in the previous quarter.

At worst, multifamily construction appears to have found a solid bottom, and more optimistically appears to be on a steady, if erratic, upward course.

NAHB is forecasting that residential construction will slowly improve throughout the second half of this year and into next year, bolstered by continued low mortgage rates, affordable housing prices and an improving jobs market.

But Builders, Consumers Are in a Pessimistic Mood

Conducted and released before the June housing starts and building permits numbers were reported, July’s NAHB/Wells Fargo Housing Market Index (HMI) fell to 14, down from 16 in June, indicating that builders see little grounds for optimism at the present time. Expiration of the home buyer tax credit, ongoing competition from foreclosed properties and short sales and difficulty in obtaining AD&C credit all contributed to the downbeat mood of the builders surveyed by NAHB.

Traces of rising optimism were found in the Northeast and the Midwest where the index rose, albeit to levels that remained low, and that improvement was supported by an increase in June’s single-family building permits for the two regions.

At the same time, slipping building confidence in the South was matched by a drop in the region’s permits. The HMI for the West also indicated an erosion of confidence, but the region’s single-family permits were flat.

Meanwhile, portraying gloomier consumers, the University of Michigan’s  Consumer Sentiment Index dropped to 66.5 in July from June’s 76.0. Beneath the surface there was positive news for housing, with 76% of the households surveyed believing that now is a good time to purchase a house, the second highest reading over the past 14 months and only one percentage point below the peak level for this period.

Further improvement in the economy may enable more households to act on this belief.

The Economy Struggles Through a Slow Patch

The dejected spirits of builders and consumers have not been helped by recent indications that the economy is slowing down. Industrial production rose a mere 0.1% in June, though it was still up a healthy 8.2% from a year earlier. Meanwhile, capacity utilization held steady at 74.1%, its highest level over the last year and a half.

Consumers retrenched in June, cutting retail sales 0.5% from May, the second monthly reduction in a row. Nonetheless, sales were still up 4.9% from a year earlier.

Even small movements in consumer spending, which is responsible for two-thirds of the gross domestic product (GDP), can have major implications for growth. NAHB believes that consumer spending will slowly increase over coming months, helping to support the economic recovery.

Inflation Still Under Control

The seasonally adjusted monthly Consumer Price Index (CPI) was down in June for the third consecutive month, falling 0.1% following a decline of 0.2% in May, but up 1.1% from a year earlier. Meanwhile, core inflation — excluding food and energy prices — rose a modest 0.9% from a year earlier.

The low rate of inflation gives the Federal Reserve the room to maintain its expansionary monetary policy and to keep mortgage rates low.

For the past year, the rental component of the CPI has been essentially flat, and as of June, it was down 0.1% from a year earlier. Homeownership “prices” — measured by using an owner’s equivalent rent, which is largely driven by the rent index without utilities — has also been drifting down, declining 0.3% over the past year.

The rent and owner components of the CPI make up 31% of the CPI. The soft rental market and excess vacancies have kept rents from rising, which has been a challenge to apartment owners who have seen other costs increase. It also has made it more difficult for multifamily projects to obtain financing.

The June Producer Price Index for finished goods also fell for the third month in a row, down 0.5% after declining by 0.3% in May. Nonetheless, the June reading was up 2.8% from a year earlier.

Weakness in construction contributed to a 0.7% drop in June for overall building materials prices for both single-family and multifamily construction, their first decrease in eight months. However, they were still up 3.9% and 3.5%, respectively, from a year earlier. Major contributors to June’s price decline were falling lumber, energy and copper prices.

 This week, we take a look at some important design considerations that should be a part of your floor plan “research and development”.

 Savvy home designers are increasingly discovering the benefits of implementing features from the following categories: Universal Design and Green Building. These contemporary industry buzzwords sound great; but what do they actually mean to you and your new home? 

• Universal Design The National Association of Home Builders defines this category of home design as “the design of products and environments to be usable by all people, to the greatest extent possible, without the need for adaptation or specialized design.” What this means: taking advantage of common sense features that make your home useable for, and marketable to, people of all shapes, sizes, and conditions. Furthermore, it is a way of thinking about your house in relation to your future in it, including whatever life changes could affect you and your ability to remain in your home. 
  • • Living on one floor: Universal design does not preclude a second story or a finished basement. Simply put, the design enables the ability to perform all of the main functions of the home – eating, sleeping, bathing – on the same floor. In this way, if your elderly parents come to stay, or a disabled friend comes to visit, or your own aging joints begin to trouble you, your home remains as hospitable and accessible as ever, to everyone.
    • Step-free accessibility: Universal design provides for access to the home and all of its main rooms without the barrier of steps. Furthermore, the use of doorway thresholds that are flush with the floor allow wheelchairs and other aids to enter more easily, and prevents others (especially those with an armful of groceries!) from tripping.
    • Wide passages and open design: Wide doorways (32-36 inches) and hallways (36-42 inches) allow wheelchairs and other aids sufficient space to more easily enter and maneuver around the home.  Wide passages also make moving furniture easier! Extra floor space and an open floor plan allow room for more people and their needs, while lending flexibility to furniture placement and multi-purpose room use.
    • Safety features: Non-slip bathroom surfaces, handrails, and grab bars benefit everyone, but especially the elderly and the disabled. New design ideas are integrating both safety and style.
• Green Building Everything is “green” these days: new homes are no exception. The fact of the matter is, several simple considerations CAN make a DRAMATIC difference in the efficiency and sustainability of your home. A little extra thought about placement of the home, products installed, and maintenance practices can save you money and peace of mind, while saving the earth’s resources. 
  • • Passive solar heating: The position of the home, as well as the length, size, and location of overhangs and windows, can significantly affect the energy use of your home – and so, the cost, both monetarily and environmentally. In the winter, sunshine provides natural (and free!) heating energy; however, these come with chilly blasts of wind. In the summer, those rays of sun work against your energy efficiency, while the breezes can aid your cooling system.
    • Appliances: High-efficiency appliances, geothermal heating systems, and programmable thermostats all help to conserve energy resources and lower your energy bills. Look for the Energy Star label when selecting appliances.
    • Insulated garage doors and exterior entry doors, insulated can lights, adjustable door thresholds, and high-efficiency windows all contribute to maintaining comfortable temperatures without high energy use and cost.
    • Low-flush toilets and water-saving faucets conserve household water and lower utility bills.
    • Proper insulation and caulking are also necessary to capture the full benefit of your other energy-saving products.

At the B.O.L.D. Company, we pride ourselves on our commitment to both quality and sustainability. As the first 100% Energy Star Builder in the Northern Kentucky area, we continue to maintain the standards that ensure that each and every one of our homes passes evaluation by a third-party rater. Our homes are 20-30% more efficient than standard homes, saving our customers money and conserving resources for future generations. We also keep up with continuing education and the latest practices recommended by the National Association of Home Builders Green Building program.

 We are also proud of our Certified Aging-in-Place Specialist who can help you incorporate the theories of Universal Design into your next home plan.

ASK THE BOLD COMPANY FOR MORE INFORMATION ON BUILDING A CUSTOM HOME

This week, we offer advice on selecting – or designing your own – house plan.

• First, consider whether you want to:
  • find a stock plan, make very minor adjustments, and build from that;
  • customize a stock plan with several changes; or,
  • design a custom plan using elements from several floor plans and your imagination.

Your answer to this question will depend on the effort you are willing to put into the process. Of course, the quickest and easiest route is to simply pick one that has already been designed and start building. However, if you have particular needs or wants that are unique to you or your situation, you will spend a lot of time trying to find a plan that fits—when your time would be better spent designing your own.

Some builders will NOT build from a custom plan, nor allow more than very minor adjustments to their stock plans. Some builders WILL build from custom plans, but you will need to find an architect to draw and modify those plans. A select group of custom home builders can help you draw, modify, and build from a house plan.

• Identify the major features you require of your home:
  • How many bedrooms and bathrooms do you need? Consider your current family unit, but also the likelihood of that unit growing (Do you anticipate having (more) children? Is there a possibility of older children moving back in? Or aging parents moving in? Do you have need for guest accomodations, and do you see that need increasing or decreasing with time?)
  • One-floor or two-floor (or more!) living? Do you plan to grow old in this house? You might plan ahead and either build a first-floor master suite, or a first-floor office with attached bath that could become a first-floor master if needed later.
  • What are your lifestyle and / or entertaining habits? Do you foresee a need for formal sitting and / or dining rooms, or would you prefer to put that space toward a more open, less formal great room/kitchen space? Will you need space for many people, seating for many people, or just “living space” for your immediate family?
  • Where do you spend most of your time? What rooms are important to you right now? What would improve those spaces? Would it be helpful to have a space dedicated to a hobby? Or to an office? Or children’s toys? Or to Sunday football?
  • Where do you and your family need privacy? Bedrooms? Offices? Backyard patios? Think about how your floor plan – placement of rooms, windows, doors, landscaping – can provide privacy to those areas that you want to keep quiet or secluded.
  • What do you NEED to store, and what would you LIKE to store? (And how?) Do you need garage space for a boat? Do you want a walk-in pantry in the kitchen? Or maybe a section of the basement devoted simply to shelving for boxes?
  • Consider your home site. If you already know where your home will be built, then you must take the site into consideration when selecting your plan. Will the house fit on the lot? A wide house on a narrow lot can pose problems. Likewise, a steeply sloping lot will pose greater challenges for some home styles than for others. Also consider the area and the homes around your site. If resale is a consideration for you, you don’t want your home to be the most expensive home on the street. Think about the best attributes of your lot and match them with your floor plan: you want windows facing your best views, you may want to take advantage of or, conversely, avoid the sun’s hottest rays of the day (depending on where you live and other factors), and you may want to position your bedrooms and offices to be further from lot lines, roads, and other homes than other rooms of your house.
  • Think about what furniture you intend to move to or purchase for the new house. If you have a giant antique armoire that has been in the family for generations, be sure you have a place to put it!
  • PETS! How can your new home’s layout make pet care as simple and convenient as possible? Maybe a large mud room with a door to the back yard for bringing the dogs in on a rainy day? How about a cabinet for the litter box in the laundry room with an opening so the cat can get in, but stray litter cannot get out? Where could you install your custom 500 gallon fish tank? Or where will you store your horse’s tack and equipment when you bring it in from the barn to clean?
• Make a list of features that you would like to incorporate into your new home floor plan. Also make a list of what you do NOT want in your home. These lists will help you remember your priorities. Clip pictures from magazines or take photos of friends’ homes that illustrate your notes or that capture the “mood” you want a particular room to have.
• Take a look at your notes from the questions above. Search house plans (there are numerous online directories – put “house plans” into your search engine, and you can spend the rest of the day looking at floor plans!) and note which ones meet your requirements. FOCUS on the floor plan layout first and the exterior second, because most floor plans can be matched up with most exteriors. If you find the perfect plan, GREAT! If not, make note of the two or three closest to what you want. Make sure you note what it is you like best about each plan (and what you don’t). An experienced builder or architect can help you merge elements of each into one plan.
• Now it’s time to think about the exterior of the home. What styles do you like? (For ideas, search for the following terms: “prairie style homes”, “traditional style homes”, “modern style homes”, “southern style homes”). Think about the style of the front of your home, but also consider what you intend to use your yard, front and back, for: entertaining and grilling out, kids’ sports or recreation (trampoline, basketball hoop, swingset). How can the floor plan affect your yard? Do you want a screened porch in the back off the master? These kinds of considerations will affect room placement in the layout.

B.O.L.D. Homes, a B.O.L.D. company, has been established as among the premiere Greater Cincinnati / Northern Kentucky custom home builders since 1986. We have well over 500 customer designed homes to our credit. Work one-on-one with the owners of the company – including a licensed real estate broker, a licensed real estate agent, a licensed professional engineer, and a CAD draftsman/designer – to design your dream home! Contact us today about plans or check out plans on our web site.

ASK THE BOLD COMPANY FOR MORE INFORMATION ON BUILDING A CUSTOM HOME

U.S. home prices, including distressed sales, increased by 2.9 percent compared to the same month last year, according to CoreLogic in its monthly index.

May was the fourth straight month prices showed a year-over-year increase.

“Home price appreciation stabilized as home buyer tax credit-driven sales peaked in late spring,” says Mark Fleming, chief economist for CoreLogic. “But given that the labor market and income growth remain tepid, we expect prices to moderate and possibly decline the rest of the year.”

Source: CoreLogic (07/13/2010)

A Pause in the Recovery or a Double Dip?

A recovery from the Great Recession was never expected to be swift or strong, but recent economic weakness has raised questions about the recovery’s sustainability. Former Federal Reserve Chairman Alan Greenspan, a man of few words, described the situation as “an invisible wall, which we have run into here. This essentially is a typical pause that occurs in an economic recovery.”

The recovery is not being pulled along by housing, and other components of growth are becoming more fragile as consumers worry about credit and jobs. However, the basic recovery path remains positive even if slightly less robust than before oil started seeping into the Gulf of Mexico and Europe decided to pull back from its expansionary efforts.

The June employment report ignited concern when non-farm payroll employment was reported down by 125,000 jobs at a seasonally adjusted annual rate, following a 431,000 increase in May. But both the May and June numbers were distorted by Census Bureau hirings and firings, which were up 411,000 in May and down 225,000 in June.

More importantly but still disappointing, the private sector added 33,000 jobs in May and 83,000 in June. Although these were hardly robust numbers, June showed the sixth consecutive month of private job gains.

During those six months, however, private temporary workers, who comprise less than 2% of private sector jobs, accounted for almost a third of the job gains, indicating that businesses are still hedging their bets, uncertain about the recovery and, in particular, how long the growing demand for their products and services will last. If demand is sustained — as NAHB is forecasting — many of the temporary positions in the private sector will become permanent.

The one apparent bright spot in the employment report — the decline in the unemployment rate from 9.7% in May to 9.5% in June — was actually a negative since it was not due to employment rising but job seekers choosing to leave the labor force, presumably because they considered their job prospects dismal.

NAHB is projecting  that the unemployment rate will be around the current 9.5% by the end of the year based on the assumption that there will be sufficient net job creation to absorb the increase in the labor force as more workers return in search of employment.

Employment stability and job growth are keys to a housing recovery. In addition to alleviating workers’ fears about losing their next paycheck, improving employment measures help boost the confidence of households that are considering buying a home.

Residential construction continues to shed jobs, albeit at a slower rate than a year ago. In June, 6,100 jobs were lost, down from the 36,900 job losses a year earlier and from the 81,700 residential construction jobs lost in November 2008.

Total construction employment — including non-residential jobs — fell 22,000 in June, down from a loss of 30,000 in May. The overall unemployment rate for construction jumped to 23.7% in June from 20.6% the month before, reflecting the  problems both residential and non-residential construction continue to face.

While the May employment report along with weak housing numbers increased speculation over a potential “double dip” in economic activity, several factors favor the continuation of modest growth.

First, states have been slower than expected in distributing the $787 billion American Recovery and Reinvestment Act funds, which could also explain some of the current softness. The longer lasting impact will support growth later this year.

Second, consumption has been contributing about half of what it would normally contribute to economic growth, but disposable personal income has been moving up and we expect this to continue.  Avoiding a double dip depends on this, along with improvements in household balance sheets that took very heavy hits during the Great Recession.

Also, the Federal Reserve’s household balance sheet estimates for the first quarter of this year show the fourth consecutive advance in household net worth. The gain was due primarily to advances in the stock market and paying down debt, mainly home mortgages and consumer credit.

We expect household wealth to trend up gradually over the balance of the 2010-2011 period. Consumers’ debt burdens have been improving since the end of 2008 and are at levels last seen at the end of 2000.

Third, productivity has increased for eight quarters as companies reduced their labor force more than output. Permanent hiring will have to occur to keep output ahead of demand as businesses reach an end to productivity gains. On the housing front, with inventories of single-family houses at a 40-year low, any increase in demand will require new building.

Difficulty in obtaining business and consumer credit has remained a significant drag, but there have been some minor signs that this may be turning around. Non-revolving credit from commercial banks — which excludes credit card debt and mortgages but includes auto loans — has risen in four of the last five months.

With bank balance sheets in better shape, it is likely there will be a slow improvement in credit availability over the coming months.

Single-Family Construction Advances Slowly, While Multifamily Continues in Reverse

The combination of the now expired home buyer tax credit, historically low interest rates and the improving employment picture has propelled single-family construction forward over the past 12 months as measured by the value of construction put in place.

Although the value of single-family construction only rose 0.8% at a seasonally adjusted annual rate in May, it was still up 32.1% from a year earlier — when construction activity was at an extremely low level. With builders working hard to complete single-family houses in time to qualify for the June closing for the tax credit, single-family construction spending can be counted on to contribute to growth in June.

However, multifamily construction spending continued its slowdown in May, falling 6.3% from April and plummeting 57.7% from a year earlier, reflecting the cumulative effects of the lack of financing for new projects and the gradual tapering off of multifamily construction starts since fall 2009.

May starts and permit numbers were up and if that improvement continues, the value of multifamily construction put in place will be on an upward trajectory in the next few months.

Pending Home Sales Down

It was no surprise that the National Association of Realtors’ Pending Home Sales Index fell sharply in May. The index is based on the signing of contracts, as opposed to the Realtors’ existing home sales numbers, which are based on settlement of those contracts.

May, therefore, marked the first month following the deadline for qualifying for the home buyer tax credit. The index fell 30.0% from April at a seasonally adjusted annual rate, and was down 15.9% from a year earlier.

As with new home sales, existing home sales were undoubtedly pulled forward into earlier months by buyers seeking to qualify for the tax credit, reducing sales in close-in, post-tax credit months. The true picture of the underlying market will not emerge until July or August.

House Prices Up

Both the 10-city and 20-city S&P/Case-Shiller composite price indices rose in April. The 10-city index was up for its 11th consecutive month, while the 20-city index was pulling out of  two months of decline on the heels of eight months of increases. Both indexes are up on a year-over-year basis — by 4.6% and  3.8%, respectively.

Prices for 11 of the 20 cities were up from a year earlier, and 10 of those 11 were up by more than 3%. Three of the nine that fell — Washington, D.C., New York City and Portland, Ore. — were down by 1% or less.

Meanwhile, the Federal Housing Finance Agency (FHFA) price index was also up in April. However, it was down 1.5% on a year-over-year basis. Prices in six of the nine Census divisions rose in April over March.

At minimum, the home buyer tax credit appears to have helped stabilize home prices and may have given them a bit of a lift. With no help from the tax credit, the next few months will provide the true test for home prices.

NAHB is forecasting that house prices will exhibit a mild upward bias for the remainder of this year and throughout next year.

This week, we look at what goes into choosing a home site. While many of the factors that go into this decision will come down to personal choice (and, as always, budget) there are important factors to consider before choosing any home site.

Begin by answering each of the following questions. Then prioritize the answers by importance to you. For instance, is it more important to you to have a wooded lot or to have convenience to work?

• Small or large lot? A small lot is generally less expensive to purchase upfront, and also less expensive and less time- and effort-consuming to maintain later. However, a small lot will not accommodate a large house or any extras – swimming pools, sheds, gardens. The size of the lot can also affect the perceived privacy of the home – neighbors are closer.
• Remote or convenient? Privacy and tranquility can be benefits of a rural site. Convenience to school, work, and emergency services are benefits of a more urban site.
• Wooded or open? Mature trees add value to your property, give your home character, add a measure of privacy, and provide shade which reduces utility costs. However, they also can drop a lot of leaves in the fall!
• Sloped or flat? Homes on sloped lots are less likely to require the use of a sump pump to keep water away from the foundation. They also allow for features like a walk-out basement. However, if you intend to install a swimming pool or a basketball goal, you want at least part of the lot to be relatively flat. And sloped lots may require a retaining wall, which will quickly increase the cost of the project.

Once you have identified the basic features you are looking for in a lot, you must determine where to look for that type of lot. Consider:

• School districts
• Local taxes
• Convenience to schools, work, shopping, health care, places of worship
• Public services

After you narrow down your choices, be sure you consider the following before signing a contract:

• SOILS Have a professional – your builder, an engineer, or a municipal authority - test the soils where you plan to build your home. Most homes are built on soils, not solid rock, but some soils are better suited than others to support a foundation. Even with poor soils, construction may proceed, but the costs will be higher.
• WATER Study the flow of water on your lot and how the placement of your home might affect drainage. You don’t want to build in a flood plain and you want water to run away from your foundation.
• UTILITIES What utilities are available? Will you spend additional money bringing utilities to your lot, or to your home on the lot?
• ACCESS What will it cost to provide access to your home site? Will you have to allocate precious funds to a long driveway?                                                                                                                                                              
• RESALE POTENTIAL Is the area likely to continue to grow or to stagnate? Is the lot on a busy road or a cul-de-sac? Is your lot one of the more expensive or less expensive lots in the immediate area? You don’t want your house to be just like every other house on the block, but you also don’t want it to be the most expensive house on the block when it comes time to sell.
• HOA FEES Once you own property in a managed community, you will likely be responsible for yearly, or even monthly, fees. Are they affordable on an ongoing basis? Are they in line with the fees in similar nearby communities? What perks does the community provide in exchange for these fees – walking paths, swimming pools, fishing lakes, tennis courts, gate security, lawn maintenance?
• EASEMENTS, SETBACK REQUIREMENTS, OTHER RESTRICTIONS Be sure you know what you are and are not allowed to do with the space, and that these restrictions do not interfere with your intended use.

The licensed real estate professionals at Bold Realty, a B.O.L.D. company, are ready to help you find that perfect home site in Northern Kentucky!  We are also available to help you find and purchase a pre-existing home, or to list your home for sale.  Contact us today, or check out Northern Kentucky Multiple Listing Service listings!

ASK THE BOLD COMPANY FOR MORE INFORMATION ON BUILDING A CUSTOM HOME

This week, we take a look at the selection process for choosing a builder. Remember that while you are “interviewing” the builder, the builder is also “interviewing” you. Building a custom home is a complex project, and it is important that BOTH of your expectations are met and that your personalities will mesh.

*BUDGET                                                                                   

What do you intend to spend on your new home? This is a question only you can answer. Professionals in the sales and lending markets can help you determine how much you can afford to spend, and you should seek their advice. But just because you can afford a dollar figure does not mean that you will want to spend that much; it simply means you can spend any dollar amount between that figure and zero.

Once you know what your budget is, make sure that you consider builders that specialize in your price range. If you want a custom home in the $300s, don’t interview production builders that build primarily cookie-cutter entry-level homes. Likewise, if you have a budget in the $100s, don’t visit $500,000 model homes or interview builders that have not built in that range—they won’t be experienced at getting the most for your money.

*LOCATION or STYLE

Next, you need to decide which is more important to you, the location or the type of home? If you intend to live in a particular school district or neighborhood, then you must determine what builders are available in that area.

If you already have a home site in mind, be sure that the builders you list are willing to build there. Not all builders will build on your lot – most production builders will only build on their lots in their subdivisions, while most custom builders will build off-site.

If where you live is negotiable, but you certainly want a particular type of house (custom, log, contemporary, traditional), then you will want to research builders who specialize in what you want.

Either method you choose, put together a list of possible builders by contacting the local home builders’ association or chamber of commerce, talk to friends, relatives, and neighbors, and also consult one or several real estate agents. If you intend to build from an architect’s plan, be sure and ask that architect if they recommend a particular builder; they may have one or a few builders in mind who are familiar with their plans.

*LICENSING and TRACK RECORD

 When you have compiled a list of anywhere from 3 or 4 to 8 or 10 potential builders (depending on your area), you should do some background research on each builder and narrow down your list prior to visiting any of the sales professionals or model homes.

-Are all of the builders on your list sufficiently insured for both general liability and workers’ compensation? Any “No” answers should be automatic dismissals from the list!

-Are any of the builders on your list members of professional organizations? National, state, or local home builders’ associations? Chambers of commerce?

-Check licensing requirements for your area: are all of the builders on your list appropriately licensed? (Many states do not license home builders, so also check with the local home builders association for a list of Registered Builders—to qualify for this designation, builders must meet strict requirements regarding contracts, warranties, standards, and dispute resolution procedures.)

-Check with the local Better Business Bureau. What is each builder’s rating? Have there been any major complaints about any of the builders?

-Are the builders on your list registered with a new home warranty program?

-Do any of the builders participate in the Energy Star Program? Do they have any Green Building, Aging-in-Place, Accessibility, or other training or designations?

-Have any of the builders on your list placed numerous liens against clients’ homes? Have any had numerous liens filed against their own properties?

-How long has each builder been in business? How many homes have they built? How many homes have they built in the area, price range, and style that you want?

*INTERVIEWS

You should now have narrowed down your list to a manageable number of potential builders to meet face-to-face. Start by touring model homes: take note of the quality of the homes, the features available, the neighborhoods, and the floor plans. If none of these initial visits leaves you with a bad impression of the builder, the neighborhood, or the home, then make appointments to meet with the sales professional for each builder.

When you meet with each builder, consider carefully: Do you feel comfortable working with this person – personality, accessibility, trust? Is this someone with whom you can have a comfortable relationship for the one- to two-year process, including preliminary preparation and post-closing warranty service? Ask the builder about plans they have to offer or about your particular plan, if you have one selected. Be upfront about your expectations, needs, and wants. Do you feel they are being similarly forthright? If you have not selected a plan or a lot, is this person qualified and willing to help you make these decisions? Ask detailed questions about the whole process: contracts to be signed, how selections are made, procedure and pricing for change orders, billing and payment policies, site visits, closing process, warranty service.

*BIDS

At this point, you may feel comfortable selecting one to three builders from whom to request a bid. If you already have a plan and a site, the bidding process may go rather quickly, and you can accept bids from a greater number of builders. If this is the case, be sure that the builder(s) actually see(s) the site and/or blueprints prior to bidding the job. Also, be sure that each builder is bidding on the same specifications, so that you are comparing apples with apples, and not apples with oranges.

If you do not already have a building lot in mind, builders can bid the job with a lot allowance; this means, they propose to build a particular house on a lot worth a particular amount of money (whatever you expect to spend for the site), and based on certain other conditions of what is determined “buildable”. Keep in mind that should you ultimately decide on a lot that is more expensive than your bid’s lot allowance, then the total bid will go up accordingly. Likewise, if you select a location that requires extra work to meet the builder’s standards for being “buildable” – additional grading, trees removed, retaining walls – the total bid price will go up.

If you do not already have a plan and/or lot in mind, you may wish to choose only one or, at most, two builders who are best suited to help you locate, purchase, and modify or prepare both the building site and the blue prints.

Most importantly, while price is important, and staying within budget imperative, cost should not be your only, or even primary, consideration. Quality and trust are priceless in a new home purchase, and cost-cutting early can lead to costly complications later.

*SIGNING THE CONTRACT

When the time comes to make the final decision – complete with signature – consider consulting an attorney with expertise in real estate and / or construction to review the contract you are being asked to adhere to for this great investment of time and money. Also, be sure you are aware how much you will be required to pay upfront and at what intervals after that. You should not be expected to pay more than 10% prior to the closing.

The B.O.L.D. Company is uniquely situated to help you through each and every step of the custom home building process. We are available to build on your lot in Northern Kentucky, or let our licensed real estate agents help you find the perfect home site! Our in-house drafting and design team, together with our on-staff licensed Professional Engineer, can help you find or design the plan of your dreams! And of course, B.O.L.D. combines quality products and craftsmanship with unsurpassed customer service, so that the finished home is everything you expect and more. Find out why 400+ other new home customers have trusted The B.O.L.D. Company since 1986!

ASK THE BOLD COMPANY FOR MORE INFORMATION ON BUILDING A CUSTOM HOME

Whirlaway Run at Triple Crown

Citation Pointe at Triple Crown

Monarchos Ridge at Triple Crown

Antebellum at Plantation Pointe

Seattle Slew at Triple Crown

CONTACT US AT THE BOLD COMPANY FOR MORE INFORMATION

Pleasant Colony at Triple Crown

The Home Buyer Tax Credit Is Over, Now What?

In the aftermath of the deadline for the home-buyer-tax-credit, which advanced a significant amount of housing demand into April, monthly housing indicators turned negative.

Single-family starts fell 17% in May to a seasonally-adjusted annual rate of 468,000, which was a return to the level of May 2009. Single-family permits also dropped to similar year-earlier levels. The June NAHB/Wells Fargo Home builder sentiment index fell back five points to 17. May new home sales plunged 33% to their lowest level on record.

The deadline for signing a purchase contract has passed, but the deadline for closing is June 30 and could be extended to September if legislation already passed in the House passes in the Senate and is signed into law.

Since existing home sales are reported at closing, they are not expected to fall off  until July. Nevertheless, they were down 2% to 5.66 million in May, although this could be due in part to a crush of closings causing delays and backlogs.

Putting the May sales decline into perspective, it was preceded by a 15% increase in sales in April. The average sales pace for the two months combined was 373,000, which was a 3% increase over the average for this year’s first quarter. A similar,  although smaller, decline occurred in December, when the 2009 home buyer credit was scheduled to expire but was extended.

Beyond the influence of the tax credit, the more volatile multifamily starts jumped 33% to 125,000 in May from April’s 94,000 and multifamily permits were up 10%, suggesting that the apartment market may finally have reached bottom.

While vacancy rates remain high, they are down from their recent peak. Expected improvement in labor markets has also encouraged multifamily developers to begin planning new projects that can easily take one to two years to complete after they receive permits.

The real question now is whether what occurred in May is a harbinger of a housing market still unable to work up enough momentum on its own to sustain a recovery or simply a temporary side-effect of the tax credit doing its job.

Although housing activity in May was generally weaker than anticipated, several factors continue to support NAHB’s forecast for improvements in 2010. Mortgage interest rates are expected to remain at historically low levels for the remainder of 2010, with only a modest increase in 2011. House prices are back to where they were in 2003.

Although prices have been bouncing around, with small positive and negative changes from month to month, some markets have been inching upwards. The economy continues to show improvement in total output and employment growth, a vital element to housing demand. New home inventories are at their lowest level in almost 40 years, and any uptick in demand for new homes will almost certainly require increased residential construction.

From a longer perspective, the U.S. population continues to grow. Household formations have lagged behind trend as a result of the recession, and those unformed households represent the prospect of moves out of the overcrowded homes of friends and relatives.

And the economy in general has been advancing. Industrial production rose 1.2% in May and was up 7.6% from a year earlier. May capacity utilization rose to 74.7% from73.7% in April and 68.5% a year earlier. Retail sales stumbled in May, falling 1.2% from April, but were still up 6.3% from a year earlier. Despite May’s pullback in retail sales, both the University of Michigan’s consumer sentiment index and the Conference Board’s Consumer Confidence Index showed solid improvement for the month.

Meanwhile, according to government estimates, only a little over half of the funds from the American Recovery and Reinvestment Act — $409 billion of the $787 billion — has been distributed, leaving well over $300 billion in economic stimulus yet to come.

These economic and demographic forces are expected to provide sufficient stimulus to slowly push the housing market forward in the second half of this year.

Financial Market Turmoil

Turmoil in the Euro currency union stemming from fiscal problems in Greece and Spain and some other member countries has spilled over to the U.S. financial markets.

For now, the United States is benefiting from foreign investors seeking safety in Treasury securities and other U.S. fixed-income assets, pushing  long-term interest rates lower. Below the 5% threshold for seven consecutive weeks, 30-year, fixed-rate mortgage rates are now among the lowest on record.

Although lower long-term interest rates are a positive for housing and the economy, the rising value of the U.S. dollar against the euro will increase the prices of U.S. exports  and dampen demand for them in Europe.

Demand in Europe is likely to weaken further as governments on the continent impose stricter fiscal measures out of concern over  their sovereign debt. On balance, lower interest rates but fewer exports will likely impose a minor drag on U.S. economic growth.

Federal Reserve Policy

In statements from its June 22-23 meeting, the Federal Open Market Committee (FOMC) has indicated it will be continuing its monetary policy of  “exceptionally low” interest rates for an “extended” period.

The FOMC’s assessment of the economy is in alignment with NAHB’s outlook. “The labor market is improving gradually,” and “household spending is …constrained by high unemployment, modest income growth, lower housing wealth, and tight credit,” the Fed said. It acknowledged that “housing starts remain at a depressed level.”

NAHB expects the federal funds rate to remain in the 0.0% to .25% range through the middle of 2011 as a relatively slow and prolonged recovery puts little stress on capacity and resources,  keeping inflation in check. Low inflationary expectations, along with the situation in Europe, should help keep mortgage rates low.

NAHB projects that mortgage rates will remain below 6% through 2010 and most of 2011.

Inflation Remains Tame

The seasonally adjusted monthly Consumer Price Index was down in May for the second month in a row, falling 0.2% following a decline of 0.1% in April, but up 2.0% from a year earlier. Meanwhile, core inflation — excluding food and energy prices — rose a modest 0.9% from a year earlier, a rate consistent with the April data.

For the past year, the rental component of the CPI has been essentially flat, and as of May, it was down 0.1% from a year earlier. Homeownership “prices” are measured by using an owner’s equivalent rent that is largely driven by the rent index without utilities. That measure has also been drifting down — 0.3% over the past year.

The rent and owner components of the CPI make up 31% of the CPI. The soft rental market and excess vacancies have kept rents from rising, which has been a challenge to apartment owners who have seen other costs rising. It also has made it more difficult for multifamily projects to obtain financing.

Once the rental sector begins recovery and rents return to a more normal path, the CPI will also reflect the major influence housing costs have on overall inflation.

The Producer Price Index (PPI) for finished goods also fell for the second month in a row, down 0.3% in May after falling 0.1% in April. The May reading was up 5.3% from a year earlier, though that is down from March’s year-over-year increase of 6.0%.

Despite year-over-year declines in cement and gypsum prices, overall building materials prices in May rose 0.7% for both single-family and multifamily construction, their seventh consecutive monthly increase, and 4.6% and 4.7%, respectively, from a year earlier.

Some near-term price relief is likely at hand, with lumber prices in recent weeks retreating rapidly from their earlier increases.

Average interest on a 30-year fixed mortgage fell to an all-time low of 4.69 percent this week, down from 4.75 percent a week ago, reports Freddie Mac.   Do not expect these rates forever.  Once the economy picks up rates will raise quickly.  Build now to lock in these rates for the next 30 years.

 This week, we take a look at the decision so many homebuyers face:  Build or Buy?

 The advantages of building a new home are many:

•  New homes are increasingly energy efficient and low-maintenance. New homes can save you up to 30% annually on utility costs. All components of the home are new and are of the latest design. Also, new homes are subject to the latest and strictest building codes and industry standards.
• You choose the features that are important to you. Instead of choosing between House A with this feature you like and House B with that feature you like, when you build your own home, you can include all the features you like, and leave out the ones you don’t. This brings us to our next point: 
• Times change, and with them, colors, designs, and lifestyles. Like the boxy cars of the 1980s morphing into the sleek aerodynamic designs of today, homes and their component parts face style and design changes. Floor plans change with lifestyle changes. Today, new home customers are choosing to phase out formal living and dining rooms, while phasing in first floor master bedrooms, convenient laundry rooms, and a more open design overall. New home buyers are also more aware and concerned about issues such as environmental impact, indoor air quality, and the ability to gracefully age in place. The latest technologies found in a new home address each of these issues, and more.
• See the house go up, inside and out. When you build a new home, you are there for the whole process. You see the empty hole in the ground, the framing and wiring prior to the drywall; you smell the brand-new paint and shiny new flooring. Are there curtain blocks over the windows? Are there electric plugs where you want to put your coffee table? There is a greater feeling of pride and of ownership – it is YOUR house, built for YOU based on YOUR wants and needs.  BECAUSE:
•  Custom homes are all about YOU, not about the sale. The difference between purchasing a new CUSTOM home and a new production home is the quality and the focus. A custom home is focused on you and your needs. A production home is directed at a large group of potential customers, both in features and in price. While a custom home will include higher quality products, a production home will have more builder-grade-quality products, to keep the price in a range affordable to a greater number of people. And because you may not be around at the time of construction, you may not even be aware of many of these quality concessions hidden behind the finishes—but many of the concessions you WILL see and experience every day you live in the home. 
• New homes come with extensive warranties – not just from the home builder. Many of the components of the home have manufacturer’s warranties, from faucets, to doors and windows, to appliances, and more.
• New homes are built in new communities, which tend to rise in value faster than older communities. Like home styles, community styles change. Home buyers begin looking for different features in their communities, whether it is pools, tennis courts, or walking paths, or convenience to the newest shopping centers and restaurants.

 Of course, there are two sides to every story. It is important that you are aware of the challenges, as well as the benefits, and determine if they can be overcome:

•  Construction of a home takes TIME. The resale of a pre-existing home can close within thirty days, while construction of a new home takes four to six months, depending on the time of year and the kinds of weather and scheduling delays that can be expected.
• Construction of a home also takes EFFORT. You may not be laying the bricks yourself, but you you WILL have to select the brick and color you want, and you will have to meet a deadline for the decision to avoid extra costs and delays. There will be lots of decisions to be made, large and small, throughout the process. An experienced professional, however, will prepare you to succeed and make each step as easy as possible– they know how early to begin making each decision, they can guide you toward the best products for your needs v. budget, and they can answer your questions each step of the way.
• Unexpected costs get you overbudget easily if you are building a house on the side (in your spare time?) or if you are building a home for the first time. With an experienced professional home builder, staying on budget should not be an issue.
• Financing can be difficult to obtain – possibly more difficult than for a pre-existing resale. Due to the current mortgage and economic conditions, financing can be a hurdle, but a professional homebuilder can help. We have the experience, knowledge, and contacts to help turn this “hurdle” into little more than a “speed bump.”

 Contact The B.O.L.D. Company today for more information on why and how to build a custom home in the Cincinnati – Northern Kentucky area. The B.O.L.D. Company has design/built over 400 new custom homes since 1986, and no two are exactly alike. Our commitment to quality and craftsmanship are reasons why we have had the distinct privilege to build for some customers over again, and to build for relatives and friends of customers. Our participation in the EPA’s Energy Star Program and the NAHB’s Green Building Training Program keep us at the forefront of technology and innovation. But most of all, we owe our success to our desire to serve our customers and put their priorities first. After all, our most popular floor plan is called “You draw it, we build it!”

CONTACT THE B.O.L.D. COMPANY FOR MORE INFORMATION ON BUILDING A CUSTOM HOME 

*The Kentucky New Home Tax Credit is NONREFUNDABLE.  This means that if your Kentucky tax liability is less than the $5,000 credit, then you will only receive a credit for the amount that you owe; you will not receive a refund for the difference, nor can you carry the difference back or forward to other years.  If your Kentucky tax liability is $5,000 or more you will receive the entire credit.    

*In Order to Qualify for the Kentucky New Home Tax Credit:

*the home must be a previously unoccupied, single family dwelling in the State of Kentucky

*the home must become the buyers’ principal residence for at least two years

*the home must NOT have been built by the homeowners themselves

*Tax Credit Applications MUST be FAXED, not mailed.  The fax number is (502) 564-3706.   Applications must be received within seven days of the purchase date.  Mailed applications will  NOT be approved.

*It’s Not Too Late to Apply for the Credit if you purchased a qualifying new home between November 7, 2009 and June 4, 2010.  Applications must be received by July 6, 2010.

*You May Qualify for BOTH the Federal Homebuyer Credit AND the Kentucky New Home Credit if you purchased a home between November 7, 2009 and June 4, 2010.

*For more information or for an application, refer to the Kentucky Department of  Revenue:   Kentucky New Home Tax Credit

 ASK THE BOLD COMPANY FOR MORE INFORMATION ON THE KENTUCKY NEW HOME TAX CREDIT

Only 672,000 new homes were started in April. That’s less than half the number needed to meet the country’s average population growth.

In the past, an average of more than 1.3 million households have been built each year, creating demand for 1.5 million new homes. In 2009, only 398,000 new households were formed, according to the Census Bureau.

“The decline in household formation is artificial,” says James Gaines, a real estate economist with Texas A&M. “The young are moving in with their parents. There’s even doubling up among working-class people. There’s a pent-up demand coming if and when the economy recovers.”

Some economists believe this analysis fails to take into account the changing economy or the large inventory of vacant properties. But Gaines and others say these factors are unlikely to significantly drive down demand.

Source: CNNMoney.com, Les Christie (06/15/2010)

Contact Mike Kegley at The BOLD Company,  (859) 657-6700 for help with your particular circumstances.

The study for BBVA Compass, a lender based in Alabama, concluded that most lenders don’t warn buyers that there will be costs beyond principal, interest, taxes, and insurance.

Among those costs are utilities. The U.S. Department of Energy reported that the typical family spends $1,900 a year – $158 per month – on things like heat, air conditioning and power.

The National Association of Home Builders calculated that the typical buyer of a new home spends about $8,640 within the first 12 months for furnishings, appliances, and home repairs and fix-ups, while the typical buyer of a resale home spends $6,540.

Source: United Feature Syndicate, Lew Sichelman (06/06/2010)

WASHINGTON, D.C. – The U.S. Consumer Safety Commission and Health Canada, in cooperation with the firm named below, today announced a voluntary recall of the following products.Consumers should stop using products immediately unless otherwise instructed.

Name of Product: Dishwashers

Units: 1.7 million in the United States and 160,000 in Canada.

Manufacturer: Maytag Corp. of Newton, Iowa or Maytag Corp. of Benton Harbor, Mich.

Hazard: An electrical failure in the dishwasher’s heating element can pose a serious fire hazard.

Incidents/Injuries: Maytag has received 12 reports of dishwasher heating element failures that resulted in fires and dishwasher damage, including one report of extensive kitchen damage from a fire. No injuries have been reported.

Description: The recall includes Maytag®, Amana®, Jenn-Air®, Admiral®, Magic Chef®, Performa by Maytag® and Crosley® brand dishwashers with plastic tubs and certain serial numbers. The affected dishwashers were manufactured with black, bisque, white, silver and stainless steel front panels. The brand name is printed on the front of the dishwasher. The model and serial numbers are printed on a label located inside the plastic tub on a tag near the left side of the door opening. Serial numbers will start or end with one of the following sequences:

Click here for more information and to check if your appliance is affected.  You can schedule a repair or request a rebate.

• deductions for mortgage interest
• deductions for real estate taxes
• capital gain exclusion for the sale of a principal residence 

 The deductions for mortgage interest and real estate taxes reduce the annual cost of homeownership by reducing the home owner’s tax liability each year.  For example, a home owner with $10,000 in annual mortgage interest payments and real estate taxes and who falls in the 25 percent tax bracket could realize up to $2,500 in tax savings each year.  Home owners who itemize their taxes can deduct from taxable income interest allocable to a first or second home for up to $1 million of mortgage debt and $100,000 of home equity loans.  And most state and local taxes paid on homes are also deductible.

When the home is sold, the capital gain exclusion can again provide home owners a tax benefit.  Under present law, sellers of a principal residence can exclude from taxation profits from the sale of a home, up to $500,000 for married taxpayers and $250,000 for single taxpayers.  With capital gain tax rates expected to increase from 15 to 20 percent in coming years, these tax savings can be substantial.

Research by NAHB economists has estimated the tax savings for home owners for certain income and mortgage amounts. For a married couple with an income of $80,000 per year and an initial mortgage amount of $250,000, the tax savings from the mortgage interest and real estate tax deductions are estimated to save the couple more than $11,000 in the first five years of homeownership.  Assuming the couple owns the home for twelve years, these savings grow to more than $25,000 over the time period. Combined with the capital gains exclusion, the total tax savings for the entire period of ownership exceeds $52,000.

For a couple with an income of $60,000 and an initial mortgage of $180,000, the five years tax savings total more than $6,000 and the total savings over a twelve year period are estimated to be more than $33,000.

Interest rates have fallen so dramatically since April 30th that the typical purchaser of a $350,000 home, financed with a $280,000 mortgage, would have saved a bundle by waiting until May.

At April’s average rate of 5.34 percent, a home buyer would have locked in a 30-year fixed rate loan with a monthly payment of $1,561.82.

The same borrower could have snagged a 30-year fixed rate loan at a rate of 4.625 percent in May and paid $1,439.59 per month.

That’s a $1,467 annual savings. Over 30 years, it’s a $44,003 savings, dwarfing the tax credit.

Source: Informa Research Services (05/26/2010)

Rates haven’t been this low since the 1950s, he says, adding that rates are unlikely to fall further.

“You can float, but that’s not a smart strategy. It’s like asking for another card when you have 19 in blackjack. Stand and take your chances,” he advises.

Source: Bankrate.com (5/26/10)

“The home buyer tax credit was just one of many factors motivating Americans to buy homes,” said NAHB Chairman Bob Jones, a builder and developer in Bloomfield Hills, Mich. “But buyers can still take advantage of today’s low interest rates and competitive prices to get a home they may not have been able to purchase just a few years ago.”

Besides mortgage interest rates that have been hovering at near-record lows, homes in many markets have become more affordable. Prices have moderated from the highs of the housing boom that occurred in most of the country, especially in major markets where they had increased significantly.

Today’s new homes are also built to be much more energy efficient than homes constructed a generation ago, making them more affordable to operate. New homes are designed to support modern lifestyles with open floorplans, flexible spaces, improved safety features, and low-maintenance materials.

Consumers who are thinking about buying a home should not count on interest rates or prices staying at current levels, however. Mortgage rates are sensitive to market conditions, and even a slight increase can push monthly payments beyond a family’s budget. As the country recovers from the recession and people stabilize their financial situations, NAHB economists expect that home prices will begin to increase by 2011.

NAHB’s home buyer brochure “Opportunity Knocks for Home Buyers” describes many of the opportunities in today’s market, as well as the long-term financial benefits of homeownership. It provides examples of how interest rates affect monthly mortgage payments and the typical federal tax savings over the first five years of homeownership. The brochure can be downloaded from NAHB’s web site at: www.nahb.org/homebuyerbrochure. 

The home buyer tax credit is still available for eligible home buyers who had a signed sales contract by the April 30 deadline and who close by June 30, 2010, as well as for qualified members of the military, foreign service and intelligence communities, who have until April 30, 2011, to sign a contract. For more information, go to www.federalhousingtaxcredit.com.

Falling rates on U.S. government securities helped push mortgage rates down to the lowest level so far this year.

The average rate on a 30-year fixed loans declined this week to 4.84 percent from 4.93 percent a week ago, reported Freddie Mac.

Also, 15-year fixed loans fell to 4.24 percent from 4.30 percent; five-year, adjustable-rate mortgages declined to 3.91 percent from 3.95 percent; and one-year ARMs fell to 4 percent from 4.02 percent.

Source: Pittsburgh Post-Gazette (05/21/10)

Output and Job Growth Precede Housing Recovery

Employment in April increased by 290,000 jobs at a seasonally adjusted rate. On top of an upward revision for March of almost 70,000, this marked the fourth month of job growth and the largest increase since March 2006.

The added jobs in April included 80,000 in professional and business services, 45,000 in leisure and hospitality and 44,000 in manufacturing as well as the Census Bureau’s addition of  66,000 temporary decennial census workers in April and 48,000 in March.

As is typical at the beginning of a recovery, the gains on the employment front were not registered in the unemployment rate, which increased to 9.9% as news of hiring brought discouraged job seekers back into the market.  

NAHB is forecasting that employment will continue to move to higher ground throughout 2010 and 2011, though not necessarily at April’s torrid pace. The unemployment rate is nearing a  peak and by year’s end is expected to be around 9.3%.

Employment stability and job growth are keys to a housing recovery, alleviating the fears of existing workers that they will lose their paycheck and significantly improving the financial wherewithal of re-hires — both of which will boost the confidence of households that it is now safe to consider buying a home.

Gradual improvement in the employment picture provides the final ingredient needed to spur demand and launch a full-scale housing recovery as relatively low mortgage interest rates and house prices keep affordability at attractive levels.

Construction employment, in the meantime, has been turning in a mixed performance, with 10,900 residential construction jobs lost in April, up from 10,100 job losses in March, but a 15,400 increase in April’s non-residential construction jobs. The overall  unemployment rate for construction climbed 1% to 20.3% in April.

The Economy Continues to Advance

Real gross domestic product (GDP) grew at a healthy 3.2% pace in the first quarter, the third consecutive quarter in which the U.S. economy was on the mend. Personal consumption expenditures, investment — primarily in rebuilding inventories and in equipment and software — and exports were the major drivers of growth.

Residential construction, which provided a lift to GDP growth in the third and fourth quarters of 2009, was a minor drag in  this year’s first quarter, reducing growth by 0.3%. Though down from the fourth quarter’s 5.6% growth rate, the economy is still expanding at a strong enough pace to create jobs faster than population growth is adding to the labor force, a trend that is expected to continue.

The employment situation will also improve as companies see the opportunity to increase output. In the early phase of a recovery, productivity growth is customarily high as businesses meet rising demand by getting more work out of their current employees, such as retail clerks who were previously waiting on an average of two customers an hour are waiting on five as business picks up.

Companies can also bring back on line or speed up idle or underutilized machinery. However, as the recovery continues, these opportunities become harder to find and firms must then hire more workers in order to increase output, reducing productivity growth.

What is occurring now is following this familiar pattern. Productivity growth in this year’s first quarter fell to a rate of 3.6%, down from 6.3% in last year’s fourth quarter, which was down from 7.8% in the third quarter. Nonetheless, first quarter growth still exceeded the post-World War II average of 2.3% leading into this recession and the 2.8% for the 10-year period prior to its start.

Residential Construction Story Is Still Mixed

The slow but steady improvement in construction activity is showing up in the data for the value of construction put in place, including the seasonally adjusted annual rate of single-family construction rising 1.6% in March from February and 17.2% from a year earlier.

In sharp contrast, multifamily construction continued its dramatic slowdown in March with a 6.3% decline from February and a precipitous 58.1% drop from a year earlier.

Though down 3% from February, remodeling expenditures for improvements in March were up 8.1% in the first quarter from a year earlier.

The combination of a growing economy, slow improvement in single-family home building, stabilization of multifamily construction and continued expansion of the remodeling market will enable residential construction to once again emerge as a net contributor to the economy.

Rays of Hope for Real Estate Financing?

A pivotal question remains: Are lenders beginning to consider lending to real estate a good proposition once again?

The Federal Reserve’s Senior Loan Officer Opinion Survey on Bank Lending Practices at Selected Large Banks released in April suggests that there is light at the end of the tunnel. The latest survey showed that only 2% of the banks were tightening on prime mortgage lending, down from a peak of 74% in the July 2008 survey, and 5% were tightening on non-traditional (Alt-A) mortgages, compared to a peak of 90% in the Octover 2008 survey.

At the same time, net tightening for commercial real estate loans fell from a peak of 87% in the October 2008 survey to 13% in the current survey.

Interest rates for conventional 30-year fixed rate mortgages continue to hover in the 5% range, where they have been for most of the year. Most recently, mortgage rates have been benefiting from the flight to U.S. debt instruments resulting from concerns over Greece and other  countries in the Euro currency union. Further, even with the Federal Reserve no longer purchasing mortgage-backed securities, investor demand for mortgages continues to be strong, keeping rates low.

A Break in Lumber Prices?

After eight weeks straight of price increases for framing lumber in which the Random Lengths composite price rose from $303 per 1,000 board feet in early March to $367 in late April, a 21% increase, prices fell in the first week of May to $358. This may be the first indication that lumber supply is beginning to increase to meet the rise in demand and to take advantage of higher prices.

Reports indicate that logs are flowing out of southern forests once again and that some sawmills have increased production. Also, several fingerjoint moulding and panel plants in Chile that had been damaged by the February earthquake have resumed production and shipments to the U.S., while others are slated to come back online over the next several weeks.

The lumber market in May is also seeing a reduction in export fees and higher quotas for Canadian lumber exports to the U.S. as a direct result of higher prices in March and April, under the Softwood Lumber Agreement (SLA). Based on continued high prices in April and May, all quotas and export fees on Canadian lumber will be eliminated for the month of June, with the exception of an extra export fee imposed on some provinces for a previous violation of the agreement.

The one remaining impediment to a greater supply of lumber and lower prices is a shortage of trucks to transport the material. Beyond that, lumber prices still could be on a roller coaster as export fees and quotas are adjusted each month according to the SLA formula based on previous weeks’ prices.

Those interviewed didn’t all see the housing market in the same light. Joseph LaVorgna, a economist at Deutsche Bank predicts that home prices will rise 37 percent by the end of 2014.

On the most bearish end, both Anthony Sanders, professor of real estate finance at George Mason University, and investment adviser Gary Shilling, president of A.Gary Shilling & Co., expect prices will decline 18 percent.

Source: The Wall Street Journal, James R. Hagerty (05/19/2010)

Tom Byrne, president of Rockville, Md.-based Chadsworth Homes Inc., says they are more popular than such features as studies and media rooms.

“In the past few years, 30 percent of the homes we build … have a laundry room with granite countertops, a single-level kitchen-style faucet, and the laundry tub will be an undercounter sink,” Byrne says.

Stephen Melman, director of economic services for the National Association of Home Builders, concurs.

“These rooms are becoming larger and more multifunctional, with organizers, a table for folding, ironing stations, and windows with a view,” Melman says.

Source: Washington Times, Carisa Chappell (5/14/2010)

The new rules also require a post-renovation notification to be presented to the home owner. This means that the remodeler must give the property owner and/or residents a copy of the post-renovation checklist or similar form. Importantly, the EPA has also extended the expiration date for any certified renovator who completed his or her training before April 22, 2010. The new expiration date is July 1, 2015.

One more thing to keep in mind: the EPA has previously given notice that it is writing another rule to require more complex dust-wipe or clearance testing, effectively requiring remodelers to fill the role of lead-paint abatement workers. If approved, this rule would become effective in July 2011.

The jumbo market appears to be thawing, at least according to a couple of recent articles in the trade and general press. But I’d be curious to know what you’re seeing in your markets.

One of the things I learned when I interviewed Vijay Lala of Bank of America Home Loans late last year is that the jumbo market started coming back in 2009, but it was mainly the really big national players like BofA that were making the loans. They were the only lenders with the financial heft to hold the loans in their portfolios comfortably. Smaller lenders, with no Wall Street players willing to securitize jumbo mortgages and unable to hold the loans in their portfolios, couldn’t get into the market.

Well, apparently what’s changing is that we’re beginning to see securities market for the loans coming back. According to an April 24 piece in the Washington Post, Redwood Trust, in a Securities and Exchange Commission filing, said it would sell $222 million in securities backed by pools of jumbo mortgages. The article went on to say that the average balance of the mortgages would be about $933,000, and that the securities, when they’re issued, would the first since the market collapsed.

The mention of Redwood Trust came deep into the article but I wonder if it should have been played up more, because if the company is successful in attracting investors, then lenders other than the big national banks will be able to at least start thinking about making loans, providing competition to the big banks and maybe helping to move the market to a more normal place.

Right now, the average interest rate on jumbo loans for the most credit worthy borrowers is about 6 percent. That’s extremely low by any reasonable standard, down from something closer to 8 percent during the height of the mortgage crisis. But lenders want to see a lot of skin in the game, more than 20 percent of the loan amount, and, at least for the last couple of years, it’s just been hard to get applications approved, even for good borrowers.

For some people—consumers and real estate people alike—the jumbo market isn’t considered that relevant to them. It’s for high-income households buying high-end houses. But in quite a few markets, houses listed at the $729,750 high-cost conforming loan limit and above are, if not mid-market houses, then not too high above the mid-market. So the difficulty borrowers have been having getting these loans hurts quite a bit.

The new regulation requires painters and renovation contractors to be trained and certified in EPA-approved lead-paint management methods.

The EPA estimates that the new procedures will add $8 to $167 to the average interior remodeling project. Contractors say the cost will be much more.

Source: Washington Post, Deborah k. Dietsch (04/17/2010)

The Conference Board — a private research group in New York — said the Consumer Confidence Index climbed to 57.9, from 52.3 in March. The closely watched index details consumer sentiment about business and the job market for the next six months.

Consumer spending accounts for 70 percent of the nation’s gross domestic product, making the Consumer Confidence Index important for the long-term economic outlook and the still-struggling recovery.

However, the index is far from indicating a healthy economy, which generally requires an index of at least 90. But it’s also far from the record-low of 25.3 in February 2009.

The updated requirements will ensure that the government’s Energy Star label continues to deliver a significant increase in energy efficiency over homes that are built to code and standard builder business practices. These guidelines will go into effect in January 2011, although some builders may choose to adopt the new requirements earlier.

Key elements of the new guidelines for Energy Star qualified homes include:

· A Complete Thermal Enclosure System: Comprehensive air sealing, properly insulated assemblies and high-performance windows enhance comfort, improve durability and reduce utility bills.

· Quality Installed Complete Heating and Cooling Systems: High-efficiency heating and cooling systems engineered to deliver more comfort, moisture control and quiet operation, and equipped with fresh-air ventilation to improve air quality.

· A Complete Water Management System: Because Energy Star homes offer a tightly-sealed and insulated building envelope, a comprehensive package of flashing, moisture barriers, and heavy-duty membrane details is critical to help keep water from roofs, walls, and foundations for improved durability and indoor air quality.

· Efficient Lighting and Appliances: Look for Energy Star qualified lighting, appliances and fans helping to further reduce monthly utility bills and provide high-quality performance.

· Third-Party Verification: Energy Star qualified homes require verification by independent Home Energy Raters who conduct a comprehensive series of detailed inspections and use specialized diagnostic equipment to test system performance.

More information about Energy Star qualified homes: http://www.energystar.gov

The law provides qualified service members who served on official extended duty outside of the United States for 90 days or more at any time between Jan. 1, 2009, to April 30, 2010, another year to buy a home and claim the credit. They have until April 30, 2011, to sign a sales contract, and until June 30, 2011, to settle and close on the home. Both the $8,000 first-time and $6,500 repeat home buyer tax credits are included in the rule.

“Congress recognized that many service members may have missed out on the home buyer tax credit due to being posted overseas,” said NAHB Chairman Bob Jones, a builder and developer in Bloomfield Hills, Mich. “It is only fitting that they be given another year to take advantage of this opportunity in appreciation of the sacrifices they have made serving our country.”

“Qualified service members” are defined as a member of the uniformed services of the United States military, a member of the Foreign Service of the United States, or an employee of the intelligence community.

The rule that requires buyers to repay the credit if they move out of their home within three years has also been waived for qualified service members if they have to sell their home due to receiving government orders for extended duty service. 

NAHB provides information on the home buyer tax credit, including eligibility requirements and links to home buying resources, on its consumer website www.FederalHousingTaxCredit.com.

The Weather Disrupts the Housing Numbers

As feared, the February housing numbers were not good. Given the unusually bad weather in the South and along the East Coast that month — with record setting snow storms in the Mid-Atlantic region and up into New England — the expectation was that many of the economic statistics would be bad, even on a seasonally adjusted basis, and they were. (more)

House Price Stability?

House price measures have been sending off mixed signals recently. However, the consensus is that the worst is over, with small price vacillations up and down for some time to come.

At a minimum, housing prices have been falling at a much slower pace, and they have stabilized in many markets. As of January, the S&P/Case-Shiller seasonally adjusted 10-city and 20-city price indexes had both risen for eight consecutive months. (more)

Minimal Pressure on Consumer Prices

Consumer prices as measured by the Consumer Price Index (CPI) remained tame in February, rising 2.1% on a year-over-year basis, down from 2.7% in December 2009. Core inflation — excluding food and energy — rose 1.3% on a year-over-year basis, down from 1.8% as recently as December 2009. This gives the Federal Reserve room to continue its current expansionary monetary policy to aid the economy in its recovery from the Great Recession.

Building material prices, which generally fell during much of the housing recession, are now showing signs of rising. Although price increases to date have been relatively modest overall, the cost of some materials has jumped considerably —  including lumber, energy and copper. (more)

“What we’re finding is that the appraisal process, the lending process, the underwriting process for loans still hasn’t caught up with the market interest in green building,” says Kevin Morrow, senior program manager for the National Association of Home Builders’ green programs.

“Technological advances have radically changed — and are radically changing — the way we build houses. The banking and mortgage industries need to be educated,” says Mark Nuzzolo, owner of Brookside Development in Woodbridge, Conn.

Source: The Christian Science Monitor, Alexandra Marks (04/07/2010)

“NAHB’s Web site that provides information about the home buyer tax credit, www.FederalHousingTaxCredit.com, has received more than 8 million visits,” said NAHB Chairman Bob Jones, a builder and developer in Bloomfield Hills, Mich. “We are doing everything we can to make sure home buyers are informed about this outstanding opportunity to benefit from buying a home before it expires April 30.”

Some of the more commonly-asked questions, and the answers, include:

How does a home buyer claim the tax credit?

The credit is claimed when the home buyer files or amends their federal income taxes. For qualifying homes purchased in 2009 or 2010, the taxpayer must complete IRS Form 5405 and attach a copy of the settlement statement. In most cases, the settlement statement is a properly executed Form HUD-1.

In circumstances where a HUD-1 is not provided, such as purchasing a mobile home or a newly constructed home, the IRS will accept an executed retail sales contract (mobile homes) or a copy of the certificate of occupancy (new homes).

Does the home buyer have to sell their current home in order to qualify for the $6,500 repeat home buyer tax credit?

A home buyer does not need to sell their current home in order to be eligible for the repeat buyer credit. They can continue to own both homes, and rent or use their former home for something else, as long as it no longer serves as their principal residence. The taxpayer is required to use the new home as their principal residence, and live in it for at least 36 months, or they will have to repay the credit.

Do married couples both have to meet the eligibility requirements in order to claim the credit, even if they file taxes separately?

Both spouses must fully meet all the eligibility requirements for either the $8,000 first-time home buyer tax credit or the $6,500 repeat buyer tax credit, regardless of if they file joint or separate tax returns. However, if an unmarried couple purchases a home and only one person qualifies, the eligible person may claim the full credit.

Do all home purchases need to be completed by April 30, 2010, in order to be eligible for the credit?

There are two exceptions to the April 30 deadline. If the buyer enters into a binding contract by the deadline, they have until June 30, 2010, to complete the purchase. The deadline has been extended a year, to April 30, 2011, for members of the uniformed services, Foreign Service or employees of the intelligence community who have been on qualified extended duty outside the United States for at least 90 days between January 1, 2009, and April 30, 2010.

NAHB’s Web site www.FederalHousingTaxCredit.com provides information including eligibility requirements for the $8,000 first-time home buyer and $6,500 repeat buyer tax credits, detailed question and answer sections, and links to additional home-buying resources for consumers.

Disclaimer: NAHB is providing this information for general guidance only. This information does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind nor should it be construed as such. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action on this information, you should consult a qualified professional adviser to whom you have provided all of the facts applicable to your particular situation or question. None of the tax information in this release is intended to be used nor can it be used by any taxpayer, for the purpose of avoiding penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.

Realtors in Northern Kentucky will have an area wide OPEN HOUSE April 10th and 11th. Visit these new BOLD Homes and this BOLD Listing during National Open House Days. Hurry to get the details on these homes before the tax credits expire!

8424 Stratford CT: resale in Florence for $169,900

3943 Buckhill DR: Model Home in Erlanger for $315,000

988 Aristides DR: Model Home in Triple Crown for $346,000

1177 Appomattox DR: Model Home in Florence for $410,000

The Fed, whose regular meeting began Tuesday, said that “housing starts have been flat at depressed levels” and “employers remain reluctant to add to payrolls” as a reason for extending the cap on interest rates.

“The Committee will continue to monitor the economic outlook and financial developments and will employ its policy tools as necessary to promote economic recovery and price stability,” the Federal Open Market Committee statement said.

Source: Bloomberg, Craig Torres and Scott Lanman (03/16/2010)

The back of the home will be about here.

There is still a great selection of building lots for your home. Follow the links below or contact me for more information.

Lot 6 Lot 7 Lot 11 Lot13 Lot15

How about a wet bar here?

May be a granite drink shelf here?

This space would be great for the closet!

Here are the finished results just in time for March Madness!!

Rich Maple cabinets and a granite top.

Stemware and wine bottles hang out here!

A place to set your "Kool-Aid" when it is your turn to shoot.

Plenty of storage in here!

Thank you Dan and Janet for trusting The BOLD Company to work on your home.

March –

“A professional remodeler knows how to translate a home owner’s dreams and budget into a beautiful reality,” said Donna Shirey, CGR, CAPS, CGP, President of Shirey Contracting in Issaquah, Wash. and 2010 chairman of NAHB Remodelers. “They have the expertise and skills to satisfy a customer while keeping the budget in check.”

Here are five tips for planning a successful home remodel that you can enjoy for many years to come.

1. Compile a list of home remodeling ideas and draft a budget for the work.

You likely have some projects in mind, such as modernizing the bathroom, renovating the kitchen, replacing windows or repairing the roof. Prioritize your wish list: Maybe you don’t have the budget for your dream remodel, but professional remodelers can maximize your dollars by doing the work in phases, suggesting budget-friendly products and materials, and implementing creative design solutions.

2. Look for a professional remodeler to help plan the project.

Start by searching NAHB’s Directory of Professional Remodelers at www.nahb.org/remodel. You’ll get a list of nearby remodelers to contact. Asking friends and neighbors for names of qualified remodelers will also help you find a match for your project.

3. Check the references and background of the remodeler.

After you start speaking with remodelers and find one or two who match your project’s needs, be sure to conduct some background research by checking with the Better Business Bureau, talking to their references, and asking if they are a trade association member (such as NAHB Remodelers). Remodelers with these qualities tend to be more reliable, better educated, and more likely to stay on top of construction and design trends.

4. Agree on a contract.

Talk over the details of the home remodeling project and begin reviewing the contract. You’ll want to check the remodelers’ insurance coverage, ask about any warranties on their work, know who is responsible for obtaining any building permits, and understand the process for making any change orders after the contract is signed. Make sure that you and your remodeler see eye to eye before you sign on the dotted line.

5. Take advantage of the energy efficiency tax credits.

If your remodel includes replacing windows or doors, adding insulation, installing new roofing, upgrading heating or air-conditioning units, updating the water heater, or installing energy generating products (such as solar panels, heat pumps, or wind turbines) then you can take advantage of federal energy efficiency tax credits through 2010 that will help defray costs and maximize your remodeling budget while reducing home energy bills. (Learn more at www.nahb.org/efficiencytaxcredit.)

For more tips on planning a home remodel or hiring a professional remodeler, visit www.theboldcompany.com .

Visit open houses all around Greater Cincinnati including our FOUR. Time is running out to take advantage of the Federal and Kentucky tax credits. See you at one of our open houses.

8424 Stratford CT: resale in Florence for $169,900

3943 Buckhill DR: Model Home in Erlanger for $315,000

988 Aristides DR: Model Home in Triple Crown for $346,000

1177 Appomattox DR: Model Home in Florence for $410,000

I discovered many years ago it’s a mistake to save the paint in the cans from the paint store. Not only do you have to deal with lots of air in the cans, but you also have an issue with rust at the lid lip. The excess air in a paint usually causes a nasty skin to form on top of the paint.

What I’ve discovered that works best for me, and you may have an even better idea, is to use the inexpensive food-storage containers you can buy in the grocery store. They come in different sizes and the trick is to fill one nearly to the top with the leftover paint.

If the paint is water-based, I always add an ounce or two of water at the top of the paint before sealing the lid. This prevents the skinning effect. Using a permanent marker, and I do this before, filling the container, I write on the side of the container the room the paint was used in, the mfr., paint type, paint name, formula if available, etc.

Yesterday I had to touch up many spots in my living room. I painted this room about ten years ago. If you were here with me today, I’d bet you $100 you couldn’t find one spot where I touched up the walls. The paint matched perfectly and it’s consistency was just like the day I opened the original can. Suffice it to say I store this leftover paint indoors at about 65 F.

First-time home buyer and move-up tax credits worth $8,000 and $6,500, respectively, expire April 30. Buyers who qualify get a dollar-for-dollar reduction in taxes or a cash payment if they don’t pay enough taxes to cover the credit.

Other factors that should spur buyers:

Low mortgage rates. If the Federal Reserve stops buying mortgage-backed securities at the end of March, 30-year rates will almost certainly rise to more than 6 percent.

Rising prices. About 30 percent of markets are already experiencing price increases. Prices are falling in 12 percent of markets, says Fiserv (but that only helps if you want to live there).

Source: Money Magazine, Beth Braverman (03/02/2010

While the IRS is still requiring the filing of Form 5405, it is not demanding that all parties’ signatures be on the HUD-1 settlement document in areas where requiring both the buyer and the seller to sign the document isn’t common.

The IRS clarification says: “In areas where signatures are not required on the settlement document, the IRS has clarified that it will accept a settlement statement if it is completed and valid according to local law. … The IRS encourages those buyers to sign the settlement statement prior to attaching it to the tax return.”

For repeat buyers, the IRS is seeking documentation that home buyers have lived in the previous property for a consecutive five of the past eight years. Proof can include property tax records, home owner insurance records, or mortgage interest statements.

Source: Washington Post (02/20/2010)

If “Cash for Caulkers” passes, home owners will be eligible for a tax credit worth up to $12,000 or half the cost of the retrofits, whichever is lower.

A home owner who spends $24,000 to cut his energy use in half will save an average of $100 per month, estimates Lane Burt, manager of building energy policy at the Natural Resources Defense Council. With a $12,000 tax rebate from the government, the payback will take 10 years.

Some real estate practitioners pointed out that energy retrofits might be a hard sell because they don’t raise a home’s sale value. “It sounds good on paper, but it’s just not how the American consumer makes choices,” says Jeff Geoghan, a Coldwell Banker REALTOR® in Lancaster, Pa. “If you’re buying a house, and you see a furnace has a 95 percent efficiency rating, are you really going to make your decision based on that?”

Source: CNNMoney.com, Steve Hargreaves (02/04/2010

Lets Make a Deal!

We want you to be successful in our offices. To help you get started we would like to offer these move in specials:

Purchase: Tenant allowance of up to $8,100 on an unfinished unit. This would accommodate the level of finish seen in our display model with interior wall, solid wood doors, stained woodwork and crown molding. Check with us as this deal is disappearing soon!

Lease: Get a $8,100 tenant allowance on unfinished units with a three year lease. This would accommodate the level of finish seen in our display model with interior wall, solid wood doors, stained woodwork and crown molding. Check with us as this deal is disappearing soon!

Links to updated pricing:

Plantation Pointe Office Centre (Florence)

(Click) Leases only at this time

Grandview Drive Office Centre (Ft Mitchell)

(Click) Purchase (Click) Lease

Beyond these updates, the IRS is also requiring additional documentation for home buyers who claim the credit for purchases after Nov. 6, 2009. Buyers must now provide a copy of the HUD-1 form or, in cases where that form is not used, a certificate of occupancy for a newly constructed home. For purchases taking place after April 30, a copy of the signed sales contract must also be supplied. Meanwhile, in order to claim the $6,500 repeat buyer tax credit, home buyers must attach one of the following for five consecutive years of the last eight to demonstrate that they meet the repeat buyer qualifications: a Form 1098 reporting mortgage interest; a property tax statement; or home insurance records.

Tax credit buyers should also know that, due to the new documentation requirements, those claiming either the $8,000 first-time home buyer credit or the $6,500 repeat-buyer credit cannot e-file. As a result, taxpayers should be prepared to wait at least 12 to 16 weeks to receive their refunds. On a final note, NAHB has recommended options to Treasury and IRS officials for homebuyers who do not use a HUD-1 form and whose local jurisdiction does not issue a certificate of occupancy. We are awaiting their response at this time. Get more information on NAHB’s consumer tax credit Web site at: www.federalhousingtaxcredit.com.

Guaranteed Energy Star:

Barrier Free Design: Whether your needs are immediate or you are planning for the future, our experience and training can help you plan your home to overcome the obstacles that might stand in your way should you need accessible housing for independent or more convenient living, for you or a family member.

Building on the Lot of Your Choice: The B.O.L.D. Company builds where you want to live. While we do have lots available in various neighborhoods, you are not limited to those sites for your new home. Whether it would be a building lot in a different neighborhood or acreage outside of town, we are experienced in the various site conditions and requirements found throughout the entire Northern Kentucky area.

Building Code Plus: While all builders must follow the building code, The B.O.L.D. Company builds to specifications above and beyond those basic requirements: not just tighter energy codes, but greater structural and performance standards as well. All items are detailed in our 30-page construction specifications that are accessible in your online account during the building process. You are confident your home will be built as promised, perform better, and achieve its maximum investment potential with this web-based tool.

Value Engineered: Quality products and techniques are evaluated as to their actual benefits and value. Initial costs are compared to long-term maintenance and performance to determine the most cost effective combination of items to construct your home. Quality and efficiency at any cost is not acceptable and must be justified economically over the life of your home.

Permanent Subcontractors and Suppliers: While The B.O.L.D. Company, like the remainder of the industry, uses subcontractors, we do not bid each job and just award it to the lowest bidder. We use quality-minded permanent subcontractors that we select after a thorough review and on-the-job performance evaluations. As a result you will see the same subcontractors on job after job, with many having worked on our projects since the company was founded in 1986. Their pride and craftsmanship are evident in each home.

Design/Build: The B.O.L.D. Company will design, draw and construct the home of YOUR choice. Whether you have a complete set of blueprints or just an idea of what you would like and need help in looking at all the options, we can meet your needs. Our in-house design, drafting and engineering gives you the flexibility to construct your home with the features of your dreams, not just a cookie-cutter production plan similar to every other home on the street.

Service to Satisfy: While we have many quality checks in the construction process to minimize service issues, they do occur. We are always willing to take care of those items that come up from time to time. Our full time service technician and our ownership team are available to you should the need arise.

Do Business with the Owners: From design, pricing, and selections, to construction and warranty service, you are always working with one of the owners of the company. Any questions, concerns or changes can be handled on the spot and discussed with one of the decision-makers of the company. You will have a higher comfort level knowing the owner is with you at every step.

The Federal tax credit has expired but BOLD Homes has three homes ready for immediate occupancy and will match your Kentucky tax credit dollar for dollar. Contact Mike Kegley for more details at 859-657-6700. Click the icon for more tax credit details.

The New Home Tax Credit is a nonrefundable credit, up to $5000, against individual income tax allowable to a qualified buyer, provided a cap of $25,000,000 for all approved New Home Tax Credits has not been met.

• The up to $5,000 state income tax credit can be applied against state tax liability for the purchase of a new, not previously occupied home in the state of Kentucky.

• To qualify you must fax the New Home Tax Credit form to the Department of Revenue at (502) 564-3706 within seven (7) days of the closing.

• The tax credit is non-refundable, meaning you will not receive a refund of any unused portion and may not be carried forward or backward to another year.

• The home purchased must be a single family dwelling that will be used as the primary residence for at least two years.

• New homes must be purchased, with a complete sale by July 26, 2010 to qualify.

To Apply For the Credit:

• Submit a Kentucky Form 40A103 Application for New Home Tax Credit application via fax within seven (7) calendar days of the escrow closing between the buyer and the seller.
• Kentucky Form 40A103 may be accessed via link to application.
• FAX to the Department of Revenue at (502) 564-3706

A Mortgage Credit Certificates (MCC) reduces the amount of federal income tax you pay, giving you more available income to qualify for a mortgage loan. MCCs are NOT mortgages. They are tax credits that put extra cash in your pocket each month, so you can more easily afford a house payment.

• Through the Kentucky Housing Corporation, the federal government allows first time homeowner an income tax deduction for part of the interest paid each year on a mortgage loan. The Mortgage Credit Certificate gives you a tax credit of up to $2,000 each year (25% of total interest), which reduces the amount of federal income tax you pay and puts more money in your pocket during the year.

• The credit can be taken for the life of the loan. If you sell your home before nine years you could be subject to a Federal Recapture Tax

MCC Brochure

The association said that the average size of a new home in 2009 was 2,480 square feet, down from 2,520 square feet in 2008.

“The era of easy money is over. You really have to think before you go out and decide you need that five-bedroom, five-bath home,” said Rose Quint, the organization’s assistant vice president for survey research.

Despite smaller home sizes and tightening credits, there are still some features that are expected in new houses. Builders say the following are most likely to be standard in homes built in 2010:

• Walk-in closets in the master bedroom.
• Laundry rooms.
• Insulated front doors.
• Great rooms.
• Energy-efficient windows.
• Linen closets.
• Programmable thermostats.
• Energy-efficient appliances and lighting.
• Separate shower and tub in master bathrooms.
• Nine-foot ceilings on the first floor.

Source: MarketWatch, Steve Kerch (10/22/2010)

• Aluminum roof coating: 3-7 years
• Enameled steel sinks: 5-7 years
• Security systems: 5-10 years
• Carpet: 8-10 years
• Smoke detectors: fewer than 10 years
• Faucets: 10-15 years
• Garage door openers:10-15 years
• Air conditioners: 10-15 years
• Asphalt: 12-15 years
• Termite-proofing during construction: 12 years

Source: Bankrate.com, Marcie Geffner (01/22/2010)

• To qualify for the move-up tax credit, a home owner must have occupied the same principal residence for five of the last eight years consecutively.
• Buyers can elect to claim the credit on either their 2009 or their 2010 tax return, whichever is best for them.
• Buyers who claim the credit in 2009 can’t file electronically because the Internal Revenue Service hasn’t put the required forms on line. The wait for a refund is three or four months.
• The home can be a mobile home or travel trailer that is fixed to land owned or leased by the home owner. A mobile home or travel trailer that is actually mobile doesn’t qualify.
• The home can’t be purchased from a close relative, including a parent, spouse, child, grandparent or grandchild.
• A buyer who earns no taxable income or doesn’t owe any federal income tax can qualify for the tax credit and file a tax return just to claim it.

Source: Bankrate.com, Marcie Geffner (01/21/2010)

To determine what cities are smart buys, Forbes magazine computed the premium and also identified locales where economists predict home prices will go up the most over the next five years.

Here are the top 10 cities the magazine chose as the best places to buy right now.

1. Boston-Cambridge-Quincy, Mass.
2. Charlotte-Gastonia-Concord, N.C.-S.C.
3. Chicago-Naperville-Joliet, Ill.-Ind.-Wis.
4. Cincinnati-Middletown, Ohio-Ky.-Ind.
5. Denver-Aurora-Broomfield, Colo
6. Minneapolis-St. Paul-Bloomington, Minn.-Wis.
7. Philadelphia-Camden-Wilmington, Pa.-N.J.-Del.-Md.
8. Portland-Vancouver-Beaverton, Ore.-Wash.
9. San Francisco-Oakland-Fremont, Calif.
10. Washington-Arlington-Alexandria, D.C.-Va.-Md.-W.V.

Source: Forbes, Francesca Levy (01/21/2010)

Typically, the busiest time for home shopping starts in March and continues through May, but this year buyers who want to take advantage of the tax credits have to have a signed contract by April 30 and close the deal by June 30.

That is getting people off the couch.

“The tax credit will absolutely have an effect,” says Pete Flint, CEO of residential real estate search engine Trulia.com. “It is going to shift demand from the later part of the year to the first part. January and February will be very strong. The next three months, there will be a surge in demand.”

Source: USA Today, Stephanie Armour (01/20/2010)

“It won’t be a strong recovery, but it will be a recovery,” said David Crowe, chief economist for the National Association of Home Builders.

Crowe forecast that sales of new homes will rise by about 33 percent while resales will go up 7 percent. He expects prices to remain stable in most areas, but some cities may see some slight declines.

“I believe we’ve seen the worst of the house price declines … The stage is set for the consumer to return,” Crowe said.

Source: Associated Press, Alex Veiga (01/19/2010)

Robert Dietz, an economist with the National Association of Home Builders, says the delay is apparently caused by the Treasury Department’s inability to quickly create new documentation that filers could use to prove they actually bought a property.

Previously, all a home buyer had to do was file a form that said they’d purchased a property. No proof was required. As a result, there were thousands of reports of fraud. This time around, the IRS is seeking ways to force home buyers to prove their eligibility.

Mary Mellem of David & Mary Mellem, EAs & Ashwaubenon Tax Professionals, says it probably will be another three months before the problem is resolved.

Source: CNNMoney.com, Les Christie (10/14/2010)

The Earth Advantage Institute, a non-profit that certifies sustainable homes, identified these green-building trends, based on its relationships with builders, architects, real estate practitioners, and lenders.

Read the whole list here.

Smart grid and connected homes. The development of custom and Web-based display panels that show real-time home energy use, broken out by individual appliance will increasingly drive consumer behavior.

Energy labeling for homes and office buildings. Accurate energy rating systems for homes and office spaces will make it easier for home owners and buyers to compare and could galvanize owners to make needed energy improvements.

Building information modeling software. The increasing sophistication and lowered cost of CAD software with more accurate algorithms for energy modeling will encourage greater use.

Financial community buy-in to green building. Lenders and insurers will get behind green building because it’s good for their bottom lines.

“Rightsizing” of homes. A larger home no longer translates into greater equity.

Eco-districts. The creation of walkable, low-impact communities in the suburban setting is gaining steam.

Water conservation. The Environmental Protection Agency finalized the voluntary WaterSense specification for new homes in December of 2009, which reduces water use by about 20 percent compared to a conventional new home. Water will be the essential resource in the next decade.

Carbon Calculation. With buildings contributing roughly half the carbon emissions in the environment, the progressive elements in the building industry are looking at ways to document, measure, and reduce greenhouse gas creation in building materials and processes. This effort will be heightened once a federal cap-and-trade mechanism is launched in this country.

Net Zero Buildings. A net zero building is a building that generates more energy than it uses over the course of a year, as a result of relatively small size, extreme efficiencies and onsite renewable energy sources. We are close to being able to do this routinely.

Sustainable building education. This will create opportunities for professionals involved in the building industry, from real estate to finance and insurance.

Source: Earth Advantage Institute (01/08/2010)

Although the most popular features have remained unchanged, some new trends are gaining traction

Mark Crawford, HousingZone Contributing Editor
January 12, 2010
HousingZone

According to the National Kitchen & Bath Association, trends in kitchen and bath design for 2010 won’t be much different from the previous year, although certain styles, colors, coverings, finishes and materials are gaining rapidly in popularity.

Traditional is still the most popular design style for kitchens in 2010. Whites and off-whites dominate the color category. Cherry remains the most popular wood for cabinetry. Ceramic, porcelain and natural stone tiles are popular kitchen flooring options, with granite being favored for countertops. Gas ranges are still preferred over electric ranges.

Newer kitchen trends that are gaining in popularity include:

• Shaker style kitchen design

• Maple and alder cabinetry finishes

• Quartz countertops

• Pull-out kitchen faucets

• Polished chrome finishes on kitchen faucets

• Under-counter refrigerator drawers

• Dishwasher drawers for small loads

The most popular bathroom style continues to be traditional with beiges and bones. Granite surfaces and simple under-mount sinks are the most popular options for vanities. Most homeowners are opting for white/off-white fixtures. Preferred faucet finishes are similar to those in the kitchen, with brushed nickel leading the way in 2010.

Bathroom design components that are gaining momentum are:

• Marble vanity tops

• Integrated sink tops, drop-in sinks, vessel sinks and pedestal sinks

• Bronze and stainless steel finishes for faucets

Lot 6 Lot 7 Lot 11 Lot 12 Lot13 Lot15

Contact Mike Kegley at O 859-657-6700 or M 859-393-9928 for more details.

A Happier New Year for the Economy and Housing, But…

This year promises to be a happier one for both the economy and housing. More pain from a battered and bruised U.S. economy may lie ahead but the general trajectory has turned from down to up.

The worst is over, but the economy and housing in particular will remain subpar and unable to perform at normal, healthy levels.

Looking into our crystal ball for 2010, we see a long haul back to full health following a long, brutal recession. The national economy will continue to gain strength throughout the year, but at a slower pace than is characteristic for the early stages of recovery. (more)

Housing Data Continue to Be Uneven

Existing single-family home sales showed their third month of improvement in November, rising to a seasonally adjusted annual rate of 5.77 million. This was the highest monthly sales figure since the 5.87 million reported in April 2006.

However, since existing home sales are based on settlements that do not capture new contracts but rather reflect sales agreements from earlier months, many of the November sales resulted from pressure on buyers to close by the end of that month to qualify for the then expiring first-time home buyers tax credit. (The tax credit has since been extended into 2010 and expanded to include repeat home buyers. See www.FederalHousingTaxCredit.com for details.) (more)

Housing Prices Inch Upwards

The S&P/Case-Shiller 20-city price index has now risen for five months in a row (July through October). And although the measure is down 7.3% from October 2008, the year-over-year rate of decline has slowed in each of the past seven months (April through October).

Further, the year-over-year decline is no longer in the double digits that prevailed for more than a year and a half. The Federal Housing Finance Agency (FHFA) price index rose in the second and third quarters. As of the third quarter of 2009, it was down only 3.7% from the third quarter of 2008. (more)

Housing Still Faces Significant Headwinds

Although the economic outlook for housing in 2010 has brightened and the extended and expanded home buyer tax credit will provide a much needed boost, the housing market continues to face significant challenges that could slow or even derail the recovery.

The job market, though improving, remains weak; potential home buyers still need large downpayments and near stellar credit to obtain a reasonable mortgage; and builders continue to face difficulty in obtaining acquisition, development and construction (AD&C) loans and, in many cases, have been burdened with significant adverse changes to the terms of existing loans. (more)

Remodeling and decorating trends in 2010 are likely to reflect the fact that many home owners are settling in for the long haul.

Here are some ideas for updating homes and gardens from decorators and leading real estate practitioners:

• Environmentally sensitive furniture. Natural fibers, sustainable woods, and recycled products are key to attracting environmentally concerned buyers.
• Classic neutral colors. Deep gray browns and gray blues, muted beige, and chalky white will be particularly popular shades, Pittsburgh Paints predicts.
• Backyard gardens. First Lady Michelle Obama led the way in 2009 when she installed one at the White House.
• Backyard living. Wood-deck additions offer an 80.6 percent payback, according to the annual Cost vs. Value Report from Remodeling magazine and REALTOR® magazine. Simple fire pits and outdoor fireplaces also will be popular, trend-watchers say.
• Made in America. As more people feel compelled to support local employment, U.S. manufactured products and antiques will become more popular, says Patricia Shackelford, author of design blog, Mrs. Blandings.

Source: Orlando Sentinel, Jean Patteson (12/26/2009) and Kansas City Star, Stacy Downs (12/27/2009)

Here are some things to keep in mind:

· State plans vary. For state by state specifics, check out the state-by-state rebate program.

· Is it really a deal? It may not be worth replacing appliances that are fewer than seven years old, but older models can represent a real deal. Joe McGuire, president of the Association of Home Appliance Manufacturers, says a 20-year-old refrigerator uses three times as much power as a new Energy Star-approved model.

· Buy now before it ends. There is only about $300 million available and some states got more money than others. It is expected to run out fast.

Source: The Associated Press, Vinnee Tong (12/30/2009)

“Some people walk away from closing with a nickel and a stick of gum, and that’s probably not going to be a good idea,” says Dale Robyn Siegel, president of Circle Mortgage Group, in Harrison, N.Y.

People whose only previous experience is renting often don’t realize how costly water, heating and air conditioning, taxes, and general maintenance can be, says Allan Glass, owner of ASG Real Estate Inc. in Los Angeles.

He estimates that buyers should have at least 1 percent of the purchase price of their home set aside for improvements and other expenses.

Source: MarketWatch, Amy Hoak (12/28/2009)

Like home ownership, owning commercial property protects a business from rent increases, limits on hours of operation or activities, or having to re-locate at the end of a term. Rent is deductible as a business expense, but so, too, are mortgage interest payments, annual depreciation, and property taxes. A mortgage is a fixed cost that can be budgeted, is not subject to rent increases, and is actually an investment from which you can expect a return, one that may later fund retirement, rather than the landlord’s retirement!

True, economic down-times often prove to be the hardest times for businesses to put together cash for a down-payment; however, these are also the times when businesses have the most to gain. Mortgage rates are at record lows and commercial property values are at their lowest point in nearly a decade. This is a frightening prospect for owners of real estate, but the savvy investor realizes that, in the long run, land always appreciates, and real estate values always go back up. To quote Warren Buffet, the key to success is to “be greedy when others are fearful [and] be fearful when others are greedy.” Far from being “greedy”, taking a bold step can actually be prudent. If the economy enters a period of inflation, as many experts expect, real estate will hold its value, even as the dollar loses value. In time, a dollar invested in real estate will be worth much more than a dollar held in cash or bonds, and probably more than a dollar invested in stocks.

While landlords tout leasing as a benefit to businesses because of the flexibility to quickly and easily relocate, ownership comes with flexibility benefits of its own: owners can make cosmetic and structural changes to the location without requiring approval, and owners can also sub-lease any extra space, which can provide extra income during down-times. Potential renters often fear becoming their own landlord because of maintenance and property management costs and responsibilities. These fears can be allayed by purchasing property that is maintained by an owners’ association. In this way, the responsibilities are hired out and the costs are shared.

It’s a buyer’s market: mortgage rates are low and property values have nowhere to go but up!

by Jennifer Kahmann, Administrative Assistant, The B.O.L.D. Company

When a home-owning parent of an adult child co-signs for a mortgage and both names appear on the note, the IRS says that under some circumstances, the first-time home buyer can qualify for the whole amount.

The IRS says the parent doesn’t qualify for any portion of the credit, but if the child hasn’t owned a home during the three years preceding the current purchase and can qualify based on income, he or she can be allocated the entire $8,000 credit.

When unmarried individuals co-purchase a home and only one of them is eligible for the credit, then the full $8,000 can be allocated to the eligible buyer.

Source: Washington Post Writers Group, Kenneth R. Harney (12/04/2009)

Existing home owners accounted for 41 percent of home purchases in November, up from 38 percent in October, the survey found.

“Current home owners jumped at the credit,” says survey research director Thomas Popik.

Source: Housing Wire, Austin Kilgore (12/22/2009)

Is Housing in a Holding Pattern?

Single-family residential construction hit bottom in the first quarter of the year when single-family starts averaged 358,000 at a seasonally adjusted annual rate. Starts rose in the second and third quarters to 425,000 and 498,000, respectively, undoubtedly boosted by the first-time home buyer tax credit that was in effect from January through November. (more)

Multifamily Construction Continues to Struggle

While single-family construction is showing some signs of life, the same cannot be said for multifamily construction. . (more)

The Recovery Begins to Take Hold

Like housing, the economy is showing signs of revival, the road to recovery will pass through some rough patches and there will still be plenty of pain. . (more)

General Inflation Remains Tame, But What About Construction Material Prices?

General measures of inflation are generally at a low level. The Consumer Price Index (CPI) rose 0.4% in November. On a year-over-year basis, the CPI was up 1.8%. Core CPI (excluding food and energy) was flat in November, but up 1.7% on a year-over-year basis. . (more)

Housing Still Faces Significant Headwinds

Although the economic environment for housing is improving and the extended and expanded home buyer tax credit will provide a much needed boost, the housing market continues to struggle with significant impediments. . (more)

Under what has been dubbed “Cash for Caulking,” home owners would get a 50 percent rebate on items like energy-efficient air conditioners, heating systems, washing machines and dryers, refrigerators, replacement windows, and insulation up to $12,000, meaning a household could spend $24,000 and get $12,000 back. There will likely be no income restrictions.

Steve Nadel, director at the American Council for an Energy-Efficient Economy, who is helping to craft the legislation, says they are contemplating having contractors or retailers pay part of the cost upfront to ease the need for home owners to come up with lots of cash.

Source: CNNMoney.com (12/08/2009)

Let The Bold Company arrange an Energy Audit on your home to determine where to save your energy dollars.

Tankless Water Heater Report from “Build It Green”

Tankless Water Heater Discussions from “Ask The Builder”

The Economy and Housing Show Some Life

More emerging data is signaling that the economy is in the early stages of recovery from a long, hard recession. The second estimate of third quarter gross domestic product (GDP), based on more complete data than what was available for the “advance” estimate issued last month, showed that GDP advanced 2.8% from the second quarter at a seasonally adjusted, annual rate.

While down from the 3.5% reported in the advance estimate, this was the first rise in this measure after four quarters of decline.

Residential construction, which has been a drag on GDP since the first quarter of 2006, subtracting roughly 1% growth from overall GDP each quarter (on an annualized, seasonally adjusted basis) on average for the last three and a half years, contributed a half percentage point of growth to overall GDP growth.

Retail sales have risen in four of the last six months. Excluding auto sales, which were affected by the “cash for clunkers” program, retail sales have risen in five of the last six months. Auto sales, which averaged 9.7 million units in the first half of the year, have averaged 11.4 million units over the last five months (July through November). (more)

First-Time Home Buyer Tax Credit Does Its Work

Single-family housing starts have generally been rising since early this year. They hit a low of 357,000 in January and February of this year (seasonally adjusted, at an annual rate), their lowest level since current records of housing starts began in 1959. There was one stumble when starts fell in August from July, yet they still averaged almost 500,000 at an annual rate in the third quarter. But in October, single-family housing starts fell to 476,000 from September’s 511,000. (more)

Inventories of Unsold Homes Continue to Fall

As of the end of October, the inventory of new homes for sale had fallen to 239,000, the lowest it has been since May 1971 when it stood at 236,000. October’s months’ supply — the amount of time it would take to sell the current inventory of homes based on the month’s sales rate — fell to a respectable 6.7 months from 7.4 months in September and was down considerably from the historic high of 12.4 months in January this year. (more)

Multifamily Construction Struggles

Multifamily units (in buildings with two or more units) were started at a seasonally adjusted annual rate of just 53,000 in October, their lowest level since starts began to be reported in 1959. Multifamily starts, which are notoriously volatile from month to month, averaged 142,000 in the first half of the year and averaged 80,000 from July through October. (more)

Housing Prices Show Some Life

The S&P/Case-Shiller national house price index rose in the third quarter, the second increase in a row. The index rose by 1.8% and 1.9% in the second and third quarters, respectively, on a seasonally adjusted basis. (more)

Housing Still Faces Significant Headwinds

Although the economic environment for housing is improving and the extended and expanded home buyer tax credit will provide a much-needed boost to housing (for information on the credit, go to www.federalhousingtaxcredit.com), the housing market still faces significant headwinds, even as there are signs that these challenges may be starting to recede. (more)

Ft Mitchell, KY

Pricing revised 2/13/2010

Building One

Building Two:

Proposed construction with a total square footage of 11,400SF that may be subdivided or built whole. Sale price is negotiable.

The listed price includes finishing the unit as one large room with commercial carpet in the main floor area and ceramic tile in the bath. The bath is finished with accessible fixtures and grab bars. The wet bar is complete with hot & cold water and space to add a microwave and refrigerator. There will be 10 Cat5 outlets homerun to a central panel.

Options are available for sound systems, TV hook ups, video conferencing, phone systems, security and additional interior finishes.

Permanent interior divider walls may be added:

Looking for something else? We are totally design build and can accommodate your needs.

Pricing and availability subject to change without notice.

Developed by 260 Grandview, LLC

Construction management by The B.O.L.D. Company

Marketed by Bold Realty

Mike J. Kegley, broker

O (859) 657-6700

M (859) 393-9928

CLICK HERE TO CONTACT US

Ft Mitchell, KY

Pricing revised 2/13/2010

Building One: STARTING LEASE RATES

Building Two:

Proposed construction with a total square footage of 11,400SF that may be subdivided or built whole. Lease rate is negotiable.

The listed price includes CAM fees and finishing the unit as one large room with commercial carpet in the main floor area and ceramic tile in the bath. The bath is finished with accessible fixtures and grab bars. The wet bar is complete with hot & cold water and space to add a microwave and refrigerator. There will be 10 Cat5 outlets homerun to a central panel.

Options are available for sound systems, TV hook ups, video conferencing, phone systems, security and additional interior finishes.

Permanent interior divider walls may be added:

Looking for something else? We are totally design build and can accommodate your needs.

Pricing and availability subject to change without notice.

Developed by 260 Grandview, LLC

Construction management by The B.O.L.D. Company

Marketed by Bold Realty

Mike J. Kegley, broker/owner

O (859) 657-6700

M (859) 393-9928

CLICK HERE TO CONTACT US

Florence, KY 41042

Pricing revised 2/13/2010

STARTING LEASE RATES

Building Two

1519 and 1521: Proposed construction with a total square footage of 7880SF that may be subdivided or built whole. Lease rates negotiable.

The listed price includes CAM fees and finishing the unit as one large room with commercial carpet in the main floor area and ceramic tile in the bath. The bath is finished with accessible fixtures and grab bars. The wet bar is complete with hot & cold water and space to add a microwave and refrigerator. There will be 10 Cat5 outlets homerun to a central panel.

Options are available for sound systems, TV hook ups, video conferencing, phone systems, security and additional interior finishes.

Permanent interior divider walls may be added:

Looking for something else? We are totally design build and can accommodate your needs.

Pricing and availability subject to change without notice.

Developed by Cavalry Drive, LLC

Construction management by The B.O.L.D. Company

Marketed by Bold Realty

Mike J. Kegley, broker

O (859) 657-6700

M (859) 393-9928

CLICK HERE TO CONTACT US

Central bank officials will discuss monetary policy when they meet Dec. 15-16.

Bernanke, who was speaking to the Economic Club of Washington, D.C., is seeking a second term. He provided a light-hearted answer to the question, “What do you like best about being Fed chief?”

“I get to go through the security lines at the airport much more quickly, and I can take along even three ounces of fluid if I want to,” Bernanke told a laughing audience.

Source: Associated Press, Jeannine Aversa (12/07/2009)

Chairs with a view!

Latest in X-ray.

Latest equipment.

Check with James or Mike at 859-657-6700 for your commercial building or tenant finish construction needs. Experienced in medical, dentistry and office.

_________________________________

Original vanities

and the after:

New floor

_____________________________

Her vanity

_________________________________

His vanity

___________________________________

Tile work around the tub

Thank you Robert and Kathy for choosing The BOLD Company to work on your home.

With prices in the cellar, this could be a terrific year to give a down payment or even the whole home.

The Internal Revenue Service says a married couple can each give gifts of $13,000 of money or property without triggering taxes for the gift givers or the recipients. That means a married couple can give another married couple a total of $52,000 a year. To maximize that they can give $52,000 in December and another $52,000 in January for a total of $104,000 to be used on a property before the federal tax credit expires.

This would buy a house in some parts of the country and be sufficient for a down payment in most others.

Source: The Wall Street Journal, June Fletcher (11/27/2009)

How does a current home owner qualify for the $6,500 credit?
Buyers must have lived in their homes for at least five out of the last eight years. The home they buy must become their primary residence, but buyers don’t have to sell their previous home. They can use the previous home as a rental or a second home and still claim the credit.

Does the new home have to be more expensive than the one the buyer currently owns?
No. It is fine to use it to downsize. If the property sells for more than $800,000, the buyers don’t qualify.

Can buyers who are building a new home claim the credit?
Yes, although the contract must be in place by April 30 and the buyer must move in by July 1.

Can buyers claim the credit if they purchase a home from a relative?
No. The legislation prohibits taxpayers from claiming the credit if the sale is between “related parties,” including parent, grandparent, child, or grandchild.

Source: USA Today, Sandra Block (11/24/2009)

For more information, click on the blue logo above or contact the BOLD Company.

NOW maybe the last opportunity to take advantage of the low interest rates. The low rates and the available tax credits makes this a great time to buy.

Reed Construction Data economist sees upward pressure on home mortgage rates

Jim Haughey, Chief Economist, Reed Construction Data
November 17, 2009 as reported by HousingZone

30-year fixed mortgage rates, averaging 5% so far in 2009, could jump as much as 100 basis points next spring when the Federal Reserve Board stops buying mortgage backed securities from the federal housing finance agencies. Freddie Mac, Fannie Mae and FHA now provide most of US mortgage financing. And the Federal Reserve Board buys about 80% of the bonds they issue to get the mortgage capital. So far the FRB has bought $900 billion in bonds and has announced that it plans to raise the total to $1.25 Trillion by the end of March and then begin selling its agency bond holdings.

Mortgage rates will rise quickly when the housing financing agencies have to sell all of their bonds in the private capital market. The added supply of bonds will lower bond prices and correspondingly raise bond interest rates. 30-year mortgage rates were over 6% through summer, 2008 before the FRB acted to take over mortgage financing. How quickly mortgage rates rise depends on how aggressively the FRB moves to sell its’ $1.25 Trillion stock of agencies bonds.

* Clean and test smoke alarms.

* Test and reset ground fault circuit interrupter (GFCI) breakers.

* Change or clean the furnace filter.

* Operate the heating system. If service is needed, you can avoid “emergency” after-hours charges.

* Adjust registers and confirm that cold air returns are clear of furniture or draperies.

* Clean the humidifier and change the evaporator pad per manufacturer’s instructions.

* Adjust or replace weather-stripping on exterior doors as needed.

* Check the fit of exterior doors: thresholds are adjustable—use a quarter to turn the screws.

* Check caulking, inside and out, and touch up.

* Drain your sprinkler system.

* Remove hoses from exterior faucets. “Freeze-proof” faucets will suffer a broken water line if the water in the hose freezes and expands into the pipe.

* Inspect chimney and air intake for nests.

* Review safe fireplace operation. Provide professional cleaning at regular intervals.

* Check garage overhead door, tighten bolts as needed, and lubricate springs with motor oil. Have other repairs done by professionals.

* Clean gutters, check downspouts; confirm that splash blocks drain away from the building.

* Check the foundation, concrete, and yard for settling; fill in as needed for positive draining.

* Seal concrete surfaces.

* After snowfall, brush snow off of gutters and away from downspouts.

* Remove ice and snow from concrete as soon as possible; avoid using de-icing agents with damaging salts.

* On pleasant days, open windows to allow the house to “breathe”.

* Decorate safely for the holidays. Do not overload circuits or use worn extension cords.

If you have any questions, please refer to your Homeowner Use and Maintenance Guidelines, or phone our office for information.

BOLD Homes has three homes ready for immediate occupancy and will match your Federal or State tax credit dollars. Contact Mike Kegley for more details at 859-657-6700.

THIS WILL BE THE LAST CHANCE TO USE THE TAX CREDIT

Even as Congress neared completion this week on legislation to extend and enhance the home buyer tax credit, proponents of the tax credit made it perfectly clear that the extension would have a limited shelf life and not be extended again when it expires next year.

Sen. Johnny Isakson (R-Ga.), a long-time champion of the home buyer tax credit, said: “This is the last extension of the home buyer tax credit. Tax credits like this only work by creating the sense of urgency to take advantage of it, and to bring the market back.”

On the floor of the Senate, Finance Committee Chairman Max Baucus (D-Mont.) said that, “It’s important that this tax credit does not become a permanent fixture in the tax code. Our amendment would end the credit on April 30 of next year. This extension would get us through the winter – traditionally the worst season for real estate. Our amendment would jump-start the housing market as it enters the summer months of 2010.” Baucus added that the seven-month extension of the tax credit would be “long enough to encourage home buyers to buy homes, but it’s short enough to remain fiscally responsible.”

MORE TO FOLLOW

Click here to get an update on this post:

Home Buyer Tax Credit Brings Hope to Housing

The housing market received what should prove to be a real boost when, earlier this month, Congress and the President extended the first-time home buyer tax credit that was set to expire on Nov. 30 into the spring and expanded it to include eligible move-up or repeat home buyers.

First-time home buyers will now be eligible for the tax credit if they sign a contract by April 30, 2010, and settle on their home no later than June 30. Likewise, move-up/repeat home buyers (existing home owners) who have lived in their primary residence for five of the last eight years will now be eligible for a tax credit of up to $6,500. (more)

Housing Still Faces Significant Headwinds

The housing market still faces significant headwinds, even as they begin to abate.

The Federal Reserve’s October Senior Loan Officer Opinion Survey on Bank Lending Practices revealed that the majority of banks are continuing to tighten lending standards for mortgages, as they have every quarter for the last four years.

However, the tightening is significantly below its peak in July 2008. Most banks this quarter reported that they neither tightened nor loosened their standards, those that tightened them reported raising their standards only somewhat and one bank reported that it had loosened its standard for issuing prime mortgages somewhat. (more)

As Housing Improves, Nonresidential Construction Struggles

Private nonresidential construction fell 7.6% from September 2008 to September 2009 according to the Census Bureau’s Value of Construction Put in Place data, which are not adjusted for inflation. Construction of office space was down 25.1%, while commercial construction — which includes restaurants, retail space and warehouses — was down 31.6%.

While single-family home construction was up 2.4% in September from the month before, production was down 47.6% from September 2008.

Multifamily construction, which faces stiff competition from the single-family market and significant obstacles to obtaining financing, decreased 4.1% in September from August. Compared to September 2008, construction was down 28.9%. (more)

Tough Times for the Rental Market

The rental vacancy rate rose to 11.1% in the third quarter — the highest reported since the Census Bureau began compiling it in 1960 — and up from 9.9% in the third quarter of 2008.

The number of units for rent that are vacant year-round rose from just under 4 million units in third quarter 2008 to 4.6 million units in third quarter 2009. These figures include apartments and single-family homes for rent. The glut undoubtedly includes for-sale units that could not sell and were eventually placed in the rental market — creating more pressure for the market. (more)

The Paint Quality Institute recently released its color trends for 2010 as consumers continue to take their cues from today’s soft economy and a variety of social influences.

In addition, the institute says, living space personalization continues to act as a driver for color change, with accent walls or niche areas appropriate for small doses of high impact, bold color while using more subtle hues on broad wall areas.

“More and more home owners are taking on the task of simple home projects to save money and improve their current space,” said Debbie Zimmer, a paint and color expert with the Paint Quality Institute. “Conversely, others are sprucing up in preparation for placing their home on the market.”

No matter what paint color is used, home owners continue to strive for comfortable, tranquil home environments, according to the institute.

Good Morning Palette

“While over-the-top renovations aren’t the norm today, handy home owners are tackling small manageable home improvements such as the addition of a morning kitchen to a bedroom or home office.

Aimed at creating warm and functional spaces, the Good Morning palette consists of hues that are fresh, clean and comfortable. Appropriate color recommendations from the institute include honey-like hues (such as tan or pale gold), coral, yellow and mineral grey.

Good Night

“The inspiration for the Good Night palette comes from above — the ceiling,” said Zimmer. As an alternative to white ceilings, the institute recommends painting the ceiling in a tint, tone or shade of the wall color or adding a softer touch by paring pastel hues.

“From pastels to deep tones, Good Night hues, as you might expect, are especially useful in bedrooms and baths or to warm up a family space,” said Zimmer.

Color recommendations include pastel hues (particularly pale blue or shell pink for ceilings), midnight blue, eggplant and wine.

Good Bye

Home staging continues to grow in popularity as property owners look for home sale assistance, according to the institute.

“The Good Bye palette reflects an assortment of simplistic hues that work across a variety of spaces, creating a welcoming first impression and suitable backdrop for any living area,” said Zimmer.

This classic palette is suitable for all areas, she said, and is an especially good choice for foyers, kitchens and family living spaces.

Color recommendations include khaki paired with crisp white, mid-toned blues, off-white/bisque and black.

The first time home buyers Federal tax credit has been extended and expanded by the Senate and House and on Friday November 6th the President signed the bill. The new law will extend the $8,000 credit for first-time home buyers for sales contracts entered into by April 30, 2010 and closed by June 30. Further, it has been expanded to include a new $6,500 credit for owners of existing homes who are purchasing a new principal residence. An existing home owner can claim the $6,500 tax credit if they have been residing in their principal residence for five consecutive years out of the last eight. Additionally, the income eligibility limits to claim the full credit amount for both groups of home buyers have been raised to $125,000 for individuals and $225,000 for married couples. For more information about the credit go to Federal Home Buyer Tax Credit website and the Federal Tax Credit Fact Sheet from NAHB.

Your purchase of a newly constructed home may be eligible for a state tax credit of up to $5,000 on your Kentucky tax return. Any attached or detached home that has never been occupied qualifies. Credit expires July 25, 2010 for home sales closed on or prior to this date or until the $25 million dollar limit has been reached. For more information check out the Kentucky Department of Revenue website.

BOLD Homes has two homes ready for immediate occupancy and will match your Federal or State tax credit dollars. Contact Mike Kegley for more details at 859-657-6700.

THIS WILL BE THE LAST CHANCE TO USE THE TAX CREDIT

Even as Congress neared completion this week on legislation to extend and enhance the home buyer tax credit, proponents of the tax credit made it perfectly clear that the extension would have a limited shelf life and not be extended again when it expires next year.

Sen. Johnny Isakson (R-Ga.), a long-time champion of the home buyer tax credit, said: “This is the last extension of the home buyer tax credit. Tax credits like this only work by creating the sense of urgency to take advantage of it, and to bring the market back.”

On the floor of the Senate, Finance Committee Chairman Max Baucus (D-Mont.) said that, “It’s important that this tax credit does not become a permanent fixture in the tax code. Our amendment would end the credit on April 30 of next year. This extension would get us through the winter – traditionally the worst season for real estate. Our amendment would jump-start the housing market as it enters the summer months of 2010.” Baucus added that the seven-month extension of the tax credit would be “long enough to encourage home buyers to buy homes, but it’s short enough to remain fiscally responsible.”

MORE TO FOLLOW

Check back to this posting for the latest updated information on both tax credits.

The First-Time Home Buyer Tax Credit Does Its Work

Recent housing data — including a rise in existing home sales and a decline in the new-home sales pace — demonstrate the stimulative power of the first-time home buyer tax credit.

As the Nov. 30 deadline for the tax credit drew near, data from the third quarter of 2009 was especially compelling in showing the credit’s impact on the housing market. Knowing that they needed to settle soon in order to qualify for the credit, first-time home buyers helped push existing home sales to a seasonally adjusted annual rate of 4.9 million in September, their strongest monthly pace since July 2007. That helped boost quarterly existing home sales by 45% over the second quarter. (more)

New Home Inventories Continue to Improve, But Demand Remains Weak

For 29 consecutive months, home builders have been doing what they need to do in the face of weak demand by reducing their inventory of unsold homes.

New home inventories peaked at 572,000 in July 2006. In September 2009, they were down by more than half to 251,000, the lowest level since November 1982. (more)

Housing Prices Up — for the Moment

The S&P/Case-Shiller 10- and 20-city seasonally adjusted house price indexes increased in June, July and August. Although both measures are still down on a year-over-year basis, 10.6% and 11.3%, respectively, their rate of decline has decreased in each of the last seven months.

In August, 16 of the 20 cities in the 20-city index saw house prices increase on a seasonally adjusted basis. The turnaround in house prices appears to be largely due to the first-time home buyer tax credit helping to stabilize and bolster demand. (more)

Housing Starts Up, Building Permits Down

Housing starts rose a modest 0.5% in September to a seasonally adjusted annual rate of 590,000, up from 587,000 in August. The rise was powered by strong single-family starts, which rose 3.9% from 482,000 to 501,000.

The increase in single-family starts reflects the continued increase in the share of starts built for the owner. In more normal periods, about 20% to 25% of all single-family starts are built on the owner’s land or built by the owner as the general contractor. That percentage declined as speculative sales rose in the mid-2000s, but it has since grown beyond historic levels as building for-sale dropped off. (more)

Builder Confidence Falls

Another signal that the housing market faces a rough road ahead is coming from the NAHB/Wells Fargo Housing Market Index (HMI) measure of builder confidence. The HMI, after inching upward for three consecutive months, fell one point in October to 18. All three components of the index — current sales, current traffic, and sales expectations — were down. The downturn in the HMI seems to be due to the expiration of the first-time home buyer tax credit. (more)

One of the most important things you can do is get your credit report in shape. Banks use your credit history to decide whether they want to lend you money and to set the interest rate, so having a good credit report is vital.

Equifax, Experian, and TransUnion are the three consumer credit reporting companies that provide information about your credit history to lenders. Under the Fair Credit Reporting Act, each of these companies is required to give you one free copy of your credit report every 12 months if you ask for it.

You can request your free reports online at www.annualcreditreport.com, or by calling 1-877-322-8228. Since you won’t know which company your lender is using, you should get a copy from all three.

Carefully review the information on the reports. If you find a mistake, contact the reporting company and provide them with an explanation and copies of any documentation you have proving the error.

If there is an item that is accurate but might be viewed negatively by a lender, such as a series of late payments, you may be able to have a comment included on your report to explain it. You need to have a credible reason, such as an illness or other extraordinary circumstance, and be able to back it up with proof.

What if your credit report could use some improvement?

Unfortunately, there isn’t any quick fix, despite what some companies may claim. However, there are things you can do to help make your credit report more attractive to lenders, although it will take time:

1. Always pay your bills before the due date.

2. Make a payment every month, whether it is the full balance, the minimum due, or some amount in between.

3. Don’t open new accounts. Lenders look at the total amount of debt you could run up, based on the limits on your cards, as well as how much you actually have.

4. Don’t close old accounts. A few longstanding relationships are better than a bunch of cards you’ve only had a year or two, unless you have an excessive number of inactive accounts.

5. Pay down your total debt as much as you can. Lending standards have gotten much stricter, and banks are reluctant to loan money to people who already owe a lot.

Lenders use your credit history to predict the likelihood you will pay them back on time. Since you can’t change the past, it is important to always carefully manage your debt, whether you plan to buy a house in the next six months or not until six years from now.

For more information on the $8,000 first-time home buyer federal tax credit, go to www.federalhousingtaxcredit.com and for more on the Kentucky$5,000 new home tax credit go to http://revenue.ky.gov/dyq.htm . Contact Mike Kegley at The B.O.L.D. Company to find out about homes in Northern Kentucky.

The Economy Is Improving, Or Is It?

The Commerce Department’s Bureau of Economic Analysis reported that real (inflation-adjusted) gross domestic product (GDP) fell 0.7% at a seasonally adjusted annual rate during the second quarter, an improvement from two earlier estimates indicating a 1.0% decline.

Meanwhile, various other economic data suggest that real GDP will increase in the third and fourth quarters.

Excluding motor vehicle and parts sales, this measure was up 1.0% in August and 0.5% in September and its has increased in four of the last five months — suggesting that consumers may be feeling a little better about making purchases.

More than 80% of the economists responding to the National Association for Business Economics forecast survey believe that the recession is now over, although they generally expect the recovery to be slower than usual. (more)

Employment Takes Another Step Down

The September employment report was a bit of a surprise. Non-farm payroll employment was 263,000 at a seasonally adjusted annual rate, more than the 201,000 in August. Nonetheless, September’s drop was still an improvement over the June-through-August average loss of 323,000.

While it is normal for employment to lag the rest of the economy, job growth could prove to be sluggish in this recovery, putting a drag on the general economy and the housing sector, in particular. (more)

Housing Continues to Struggle

Housing continues to be buffeted by multiple forces. A weak economy, dismal job market, foreclosures, fears of further declines in home values and tight credit conditions are among the factors weighing the housing market down. (more)

Consumers Send Out Mixed Signals

While the University of Michigan’s consumer sentiment index rose to 73.5 in September from 65.7 in August, the Conference Board’s Consumer Confidence Index slipped from 54.5 in August to 53.1 in September. (more)

On housing in particular, consumers’ views of the marketplace held steady in the Michigan survey, but there was slippage in the Conference Board’s assessment of consumer plans to buy a house over the next six months. (more)

Have Housing Prices Stabilized?

The seasonally adjusted S&P/Case-Shiller 20-city and 10-city Home Price Indexes were both up in June (0.9% and 0.8%, respectively) and July (1.3% and 1.2%). Still, both are down on a year-over-year basis — by 12.8% and 13.3%, respectively. (more)

What Lies Ahead for the Economy and Housing?

The economy does seem to be in the early phase of a recovery as government money from the stimulus package is just beginning to flow into the economy, sparking some spending. Early indications are that overall output is on the rise, even as some parts of the economy continue to shed jobs. Unfortunately, job losses are still outstripping job gains, resulting in a net loss of jobs, and the outlook is for further job losses into early next year. (more)