The latest Columbia SC real estate news recently included the U.S. Department of Housing and Urban Development (HUD) issuance of new regulatory guidelines to the Fair Housing Act. The new guidelines more closely quantify and qualify “those actions or policies by landlords, property managers, real estate agents or lenders that could be classified as discrimination” against people protected under the Fair Housing Act. Under the new regulations, HUD is able to charge those in violation of the act and have the U.S. Department of Justice (DOJ) represent the complaining party. Violations carry with them the possibility of damages paid to the complainant in addition to potential civil penalties and applicable punitive damages as determined by the court.
This past April, HUD added a codicil to the Fair Housing Act regarding the assessment of criminal records in certain real estate transactions. HUD contends that refusing housing to people based on their criminal background or arrest record is discriminatory. Their reasoning? Because a disproportionate number of people with criminal pasts are comprised of racial minorities. In addition, this past September, HUD further opined that language-related housing restrictions or caveats violated the Fair Housing Act. Their reasoning? They contend the language barrier between the national origin of those seeking housing closely corresponds to their limited proficiency in speaking English.
So, what’s behind the new regulatory guidelines and why are they in the latest Columbia SC real estate news? Experts say clarification is an important addition to the Fair Housing Act because such measures help to better define discrimination in housing, and to close potential loopholes to provide equal housing opportunities to all U.S. residents. Furthermore, with home ownership at its lowest rate in over 50 years, more and more people are renting. HUD wants to make sure property managers are well-versed in the guidelines and their ramifications. With more people renting now than owning, HUD is aware that the ongoing relationship between the housing provider – the landlord – and the property manager extends longer than that of a real estate agent or mortgage lender. In comparison, while an agent’s or lender’s involvement with a person protected under Fair Housing ends upon completion of the transaction, the landlord and property manager interaction continues throughout the term of a lease. In addition, according to experts, many housing providers and landlords are not "up to speed" on the Fair Housing Act regulations and are not complying as a result. Enter HUD to start better policing the industry.
HUD’s ruling regarding limited proficiency of the English language was designed to clear up existing grey areas or implied loopholes. The new regulatory additions say the refusal on the part of property managers or landlords to rent to people who can’t speak fluent English is discriminatory, based on their national origin. In addition, the law encompasses all areas of housing – including lenders. What this means is that lenders must be able to translate forms and allow for interpreters to be present during the loan application process and the loan closing. HUD has identified this shortcoming as a hindrance that, until now, has prevented prospective borrowers who don't speak English from getting mortgage financing.
Experts say as trends in housing tend to grow and change, more regulatory guidelines will ultimately be added to eliminate the loopholes and grey areas which still exist – especially regarding the responsibilities and limitations on housing providers. Most property managers expect HUD as well as state legislatures to provide additional guidelines to further clarify what's expected from the rental housing industry. Better regulation within the industry, on both the federal and state level, would allow for educational opportunities for housing providers and landlords, therefore minimizing the number of occurrences of violations of the Fair Housing Act.
Property management insiders say their hope is the states recognize there is an information breakdown, and awareness is needed to educate people working in what is a specialized niche within the real estate market. They cite training for landlords, housing providers and property managers as the most important factor to help them understand the regulations and their obligations under the Fair Housing Act guidelines.
One property manager summed up a critical issue affecting the rental industry and the impact some decisions make with respect to the regulations. Their expectation is that additional regulations will eliminate the subjectivity of opinions in the process of leasing rental units to minorities and others. The property manager went on to say that he usually suggests property managers distance or remove the landlord from the decision-making process when it comes to the rental properties. After all, he contends, that’s what property managers are for. They are the experts. “You take out any sort of human judgment… because even if it’s well-intended, there could be something that would have ramifications… counter to the HUD guidelines,” he said.
HUD normally tailors their new guidelines and clarifications based on previous Fair Housing Act violations of which they are made aware.
The prognosis seems to be clear. Fair Housing Act regulations will likely continue to be part of the latest Columbia SC real estate news. The government, it appears, will add more layers to the Fair Housing Act in an effort to ensure those protected under the Act will not be subject to discrimination. While it’s a noble, admirable end – nobody should be a party to discrimination – the means to that end remain bureaucratic, arbitrary and borderline overkill.
As long as the home ownership rates continue to be as high as they are, more people will be forced to rent – including a large number of people protected under the Fair Housing Act. Those people include substantial numbers of minorities as well as non-English speaking tenants who’ve migrated into the United States.
The latest Columbia SC real estate news is that we can expect Fair Housing Act regulations to get broader to encompass more aspects of rental real estate and housing.
See more articles pertaining to the latest Columbia SC real estate news in the section of articles on Columbia SC Real Estate News just below Columbia SC Real Estate Categories in the column to your right. And remember, we also post tips daily on Facebook and Twitter. Check us out there as well.
The Columbia SC home buying market is full of experience as a dynamic, ever-changing process. Because it’s a “slice of life,” shopping for a home can often present you with challenges at best and disappointments at worst. To be prepared for the challenges and to minimize the disappointments we’ve identified five ways you can re-position your home search requirements – and make it a more enjoyable and more successful project.
The Neighborhood or Market: Regroup, rethink or retreat.
If you’re consistently unable to find the “just-right” home you’re looking for in the neighborhood or market you’ve identified as where you’d like to live, do a quick reassessment. Perhaps you’ve set your sights in the Columbia SC home buying market too high and can’t find the size, quality or style home in the price range you hoped. Conversely, maybe you keep looking at homes you can most comfortably afford, but they don’t meet your family’s needs. It may be time to take a closer look at other neighborhoods to see what they have to offer.
After some regrouping and rethinking, you can do a little more research in other neighborhoods. You may discover neighborhoods that were initially ruled out now present new opportunities. For example, you may find that a price tag of, say, $400,000 in one neighborhood or nearby market may provide “more bang for the buck” than that same $400,000 in a trendier neighborhood. If you still can’t find a suitable home, it could be time to retreat – meaning your expectations versus the reality of the housing market are out of line. You’re either expecting too much for where you’re looking, or need to reconsider what you’re willing to pay for what you want.
Consider Cosmetic Attention: No, not for you… for the house!
Let’s be honest, the choice between buying a “move-in ready” home that’s new or already been renovated versus one that needs remodeling is a virtual no-brainer. The time, talent, money and desire to undertake a home remodeling is often lacking among most people in the Columbia SC home buying market. As a result, there are homes in the market with attractive, popular locations that are 40 years old or more. Those homes won’t command nearly the attention and interest than the newer one – or remodeled one – a few blocks away. If you’re up for the challenge, however, older homes may be worth a look. You may find the money you can save in the difference in the sales price can be used to update the property. Best of all, most of the homes may require little more than some cosmetic attention – like fresh paint and refinished hardwood floors.
Put Your Heads Together: Get on the same page.
Many times, couples in the Columbia SC home buying market find themselves at odds over what they want in a home. He wants a bonus room to convert into a man-cave or an in-home office. She wants a larger laundry room or an additional guest bedroom. Being able to understand what each other wants and needs is not only the key to compromise, but it can save time and aggravation during the search for the home that satisfies both parties.
See if You Can Come up With More Money: Explore your options.
While we certainly don't recommend taking on a higher payment than you can comfortably afford, there are ways to use some creativity with the down payment or financing. Often homebuyers have difficulty with the remaining 5% or so of the down payment. Unfortunately, that 5% can prevent them from reaching their budget goals, and kill the deal.
There are options, however. If possible, look into getting assistance from family members to use as part of the down payment. If that isn’t an option, there are lenders that offer mortgages with low down payments. Remember, just because one lender doesn’t offer a particular program you’re looking for, it doesn’t mean another bank won’t. Shop around – you may find just the solution you’re seeking.
Don’t Force the Timing: It’s either right or it’s not.
The Columbia SC home buying market isn’t right for everybody, all the time. With interest rates having been near all-time record lows for several months prior to their recent increase, real estate experts were saying it was the best time in decades to buy a home. While interest rates were low, home prices – and rental rates – were on the rise, making it difficult for first-time borrowers to afford down payments. So, many prospective homeowners were relegated to remain on the sidelines. The simple truth is this: The timing is only “right” when it’s right for you and your particular financial situation. So, don't force the timing. Homes are bought and sold every day and mortgage financing is available. Chances are, that’s not going to change – no matter who wins the presidential election!
There’s absolutely nothing wrong with putting the brakes on your home search for a little while if that’s what you feel compelled to do. Too often, prospective homeowners are pressured into making a decision based on market conditions. Sometimes they’re pressured because an apartment lease is coming due and they need to renew or move. Again, if you don't feel ready to jump into the Columbia SC home buying pool, don’t. Many people find waiting can help them in the long run. It can give them added time to save money or decrease debt to afford a larger down payment. Other people use that time to work on improving their credit score. In addition, some prospective home purchasers simply may elect not to buy a home because they may be planning to relocate in a relatively short time. No matter what your reason for deciding against buying – it’s your decision. You may even look back and think it was the smartest thing you ever did. When it comes to buying a home or not buying, smart decisions are good decisions.
Read more about home buying tips in the section of articles on Columbia SC Home Buying Tips just below our Columbia SC Real Estate Categories in the column to your right. Remember, we also post tips daily on Facebook and Twitter. Check us out there, too.
Columbia SC insurance costs aren't cheap. The average U.S. homeowner pays $952 for insurance on their home. While it’s not a budget-breaker, we all would like to pay less. Here are a few helpful strategies and tips that not only better protect your home from loss, but can help save you money, too.
First, it’s important to make sure you have the proper amount of coverage on your home. It’s vital to determine whether you’re currently paying too much or not enough. Columbia SC insurance costs experts recommend working with your insurance agent to calculate the estimated cost of rebuilding your home should a disaster occur. Keep in mind the replacement value of your home will likely be a great deal higher than the market value. Why? Because if you have to completely rebuild your home, it will probably be more expensive than what you paid for it. In addition, if you have a mortgage, your lender will usually only require coverage in an amount equal to what you paid for the home. In actuality, the mortgage holder really only cares about sufficient coverage to pay off the loan amount in the event of a total loss resulting from a fire or natural disaster.
Your insurance agent can assist you with ideas about upgrades and loss prevention steps you can take to lower your Columbia SC insurance costs – without running the risk of being underinsured. We’ve identified ten items that could reduce your homeowners insurance premiums.
Choose a higher deductible.
If you’re comfortable with paying for smaller claims out of your pocket, you definitely need to increase your deductible. Since most homeowners plan to use their insurance coverage for major perils, your deductible should be at least $1,000. Insurance experts say the more you’re able to pay from your cash reserves or savings, the more you’re able to save. Homeowners with $5,000 or even $10,000 deductibles can save even more – if they are capable of covering the costs.
Consider bundling your policies.
Insurance companies that offer policies covering home, auto or life often provide a discount for bundling them together under the same company. Experts suggest shopping each of the policies separately and comparing the costs to what bundling them would be. If the savings warrants, it makes sense to deal with one reputable, highly-rated insurance company.
Don’t sweat the small claims.
Avoid making small claims if possible. Should you incur damage to your home that you can handle out of pocket without filing a claim with your insurance company, do it. Like most insurance, the more claims you make (not just the size of each claim) the greater the likelihood your premiums will increase. In addition, before you think you’ll just change insurance carriers, experts point out many insurance companies are members of a larger database with information on customer claims. So, just changing carriers won’t necessarily mean you’ll start over with a new company – your premium may still be higher.
Opt for paperless billing.
Insurance companies – like many other business who receive monthly payments – always seek their own ways to cut costs. Encouraging customers to choose paperless billing has been one way insurers can do this. In turn, by passing on some of the cost savings to their customers, paperless billing can offer you a small discount on your Columbia SC insurance costs.
Pay premiums annually instead of monthly.
Most insurance companies include a small processing fee for premium payments paid monthly. However, some companies offer cost savings if you elect to pay your premium annually, or even semi-annually. Depending on how much the processing fees are, you could save up to $50 or more.
Install a central alarm system.
If you install a central alarm system – one that’s monitored by a home security company – you could qualify for a discount. Insurance companies reward their customers who perform proactive measures to limit or prevent damages that could potentially occur to their insured premises. An alarm system notifying first responders like the fire department or police department usually minimizes losses to both the homeowner and the insurance company.
If your home is older, update it.
Older homes, of course, likely have outdated electrical and plumbing systems. Such systems can often be responsible for damage – and resulting losses – for the homeowner and the insurance company. By replacing the electrical and plumbing systems you can save money on your Columbia SC insurance costs by minimizing the risk older systems pose.
Professionally install storm shutters and doors.
Notice we used the word, “professionally.” If your home is located in a hurricane-prone area, having professionally installed protective storm shutters and storm doors can save money on your insurance premium. Check with your carrier ahead of time and find out what they will require for a premium discount. Most companies will want receipts for the work performed or other certification that the work was completed by a professional installation company. Having specially designed storm shutters and doors may help save Columbia SC insurance costs.
Install an automatic generator.
During a power outage – especially in some parts of the country – water pipes can freeze quickly, creating considerable damage in the event of breakage. If you have an automatic generator wired directly to your home’s electrical system you can avert such a disaster. In return, most insurance providers will give you a money-saving discount for being prepared – and potentially eliminating damages or loss.
Exercise customer loyalty.
One of the hallmarks of good customer service is rewarding customers for their continued brand loyalty. Insurance companies do the same thing. For example, one nationally recognized insurance company will lower a customer’s deductible by $50 for every year the customer has had the policy – without increasing the premium. It’s a simple, but effective way of saying “thanks” for being a loyal customer. The net effect, of course, is the customer is saving money by not having to pay for the lower deductible. It's just another way you can save on Columbia SC insurance costs.
You can find more articles pertaining to Columbia SC insurance in the Columbia SC Insurance section of our site below Columbia SC Real Estate Categories in the column to your right.
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The Columbia SC economic market has been battling the notion for some time now that the U.S. is headed for another housing bubble. A repeat of the recession and housing crisis from less than a decade ago is unlikely at best. Yet, there are those that have warned of another housing meltdown like the one that occurred back in 2008. Before you buy into the double-talk, let’s examine a few important comparisons to then and now – and you can draw your own conclusions as to where housing is headed – especially if you’re a real estate investor.
First, it should be noted that individual, select real estate markets certainly aren’t immune to the bubble phenomenon. Each micro-market, as it were, stands somewhat on its own. However, there are few signs on a national level that are serious enough to adversely affect the entire housing industry.
Subprime Mortgages
One of the key ingredients in the housing meltdown recipe back in 2008 was the abundant availability of mortgage money – loaned to just about anybody that wanted some. Experts in the Columbia SC economic market say for another housing collapse to occur, the entire housing market would have to be comprised of these ill-advised – and ill-fated – mortgage loans. While that possibility could certainly arise at some future date “down the road,” today it doesn’t exist. Let’s look at a “then and now” comparison.
Then: The original loan volume of all subprime loans in 2005 was estimated at nearly $625 billion. Subprime loans are called that because the borrowers have low credit scores or other qualification issues, but were granted the mortgage financing anyway – amplifying their credit risk to the lending institutions.
Now: There was approximately $56 billion in new subprime loan originations in 2015 – just ten short years later. That’s a reduction of more than 90% in the volume of subprime lending. In 2005, subprime loans accounted for over 20% of the entire mortgage market. Today, they comprise roughly 5%.
New Home Craze
During the time preceding the housing crisis, the rate of homeownership rose dramatically, fueled in part by easy credit and subprime mortgage lending. Most people weren’t renting, as buying was easier, cheaper and made better long-term financial sense. As a result, housing production reached a peak as supply struggle to keep up with home demand. Here’s another “then and now.”
Then: Sales of new single-family homes reached nearly 1.28 million in 2005. According to the U.S. Census Bureau that’s the highest level in the more than 52-year history that particular statistic has been tracked. A great deal of the growth in sales was the result of investors and other real estate speculators taking advantage of, once again, readily available and easy-to-get credit.
Now: The number of new single-family homes sold in 2015 was 500,000. That represented a 61% decrease from the highest level. In addition, it was 30% less than the previous 51-year average of Census Bureau data. To further put the number in perspective, there were only 490,000 new home sales way back in 1968! By the way, the American population increased during that 47-year period by more than 120 million people.
After the housing crash, the following occurred: There was a market surplus of single-family properties, and once-plentiful mortgage availability changed drastically. The result was a severe drop in buyer demand. Naturally, real estate investors in the Columbia SC economic market exhibited the same lackluster interest.
Local Bubbles
Some real estate markets, including the Columbia SC economic market, rebounded well following the recession and housing crisis. Economists point to natural demand created by employment and population growth. Other real estate markets fared even better – at least until the bubble burst. One case in point is the phenomenon that occurred few years ago in the downtown Miami condominium market. Investor demand – primarily from Latin America – caused a spike in condo prices and growth in construction. Experts say the supply of condos in downtown Miami increased by 8,000 units. With a stronger U.S. dollar forcing less investor interest, the last year or so has seen a glut of condos available for sale – experts say roughly 3,500 units – representing nearly 2.5 years of inventory. Sluggish sales created by the oversupply has caused sale prices to fall 6% during the spring and summer of this year.
Higher Interest Rates
While interest rate increases are still part of the bubble talk double-talk in the Columbia SC economic market, so far the Federal Reserve has only slightly increased rates – by less than .25%. These economic facts remain: The economy is relatively soft as a result of slower-than-expected GDP growth, low personal savings rates, low homeownership rates and only a slightly improved jobs market. And while raising interest rates could stifle or stagnate what growth the economy has enjoyed, it's pretty safe to assume, the Fed will raise rates at some point in the not-too-distant future.
How will rising rates affect you? As an investor, it can affect both your homeownership and your rental property portfolio. While an increase in the Fed funds rate doesn’t immediately equate to a comparable increase in mortgage rates, fewer people will buy or borrow. For landlords, an interest rate increase may actually be a good thing since it would likely drive more potential tenants to the rental market, keeping them on the home buying sidelines a little while longer.
Real estate investors should be aware of the downsides of a rising interest rate market. If your properties are mortgaged – especially with a short-term loan or adjustable rate mortgage – consider refinancing or paying off the loan. Investors should be cautious of what exit strategies they employ in a rising rate environment. Should you sell to another investor who may need financing, you may need to adjust your asking price. Simply put, the reason you’re selling is that you may not be able to make the numbers as attractive as they once were – and the new investor may feel the same way. If at all possible, investors selling properties during a rising rate market should find a cash buyer.
You can find more articles pertaining to the Columbia SC economic market in the "Economy" section of articles just below Columbia SC Real Estate Categories in the column to your right.
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Some of the most important Columbia SC outside home improvements can also be the least expensive – and can put your home’s “best foot forward.” When it comes to giving your home a boost in curb appeal, here are nine ideas to improve its exterior.
Cut the grass and tend to the lawn area.
For most homes, the lawn comprises a major portion of the front yard – as well as what’s seen from the road or driveway. As such, the condition and appearance of your lawn can have a huge impact on curb appeal – good or bad. Give your grass a little TLC. Mow it, rake it, edge it and get rid of the weeds. Make sure it gets plenty of water and the right amount and type of fertilizer.
Throw away the junk.
Eyesores like old lawn furniture, swing sets no longer in use, or dead bushes should be removed. Find an out of sight hiding place for other unsightly items such as garbage cans or recycling bins. In short, remove the clutter, throw away the junk and improve the visual appeal of your home’s exterior. It’s one of the Columbia SC outside home improvements that costs the least.
Make your home visitor-friendly.
When friends, family or potential buyers see your home and start to enter, give them a good first impression. Keep the driveway, walkway, front steps, porch and front door as clean and unobstructed as possible. Pay attention to details like weeds growing in the walkway or driveway and cracks that need to be filled or repaired. Not only can they be eyesore, they can be potential hazards. If you have a plain concrete walkway, consider edging it with a classic brick or stone trim. In addition, lighting is not only a nice touch but it can add safety and security after dark. Outdoor lighting can greatly improve your home’s curb appeal, especially low-voltage landscape accent lighting for trees and shrubbery.
The front door focal point.
Your home’s front door is arguably its main focal point for all visitors that come to your house. Treat it that way. Keep it clean by washing it periodically and wiping it down every few days to remove cobwebs, dust and pollen. Consider refinishing or repainting it as needed. Your front door’s hardware is important, too. Remove tarnished hardware and give it a good polishing. If that doesn’t do the trick, replace worn or old hardware such as handles, hinges or door knockers. For inexpensive Columbia SC outside home improvements, consider adding a shiny new brass kick plate at the bottom of the front door. Not only will it add a touch of class, it can also hide scuff marks or scratches. Complete the front door makeover with a welcoming doormat that matches your home’s general style.
Care for bushes, trees and greenery.
Well-maintained bushes, trees, flowers and other plantings can contribute greatly to your home’s overall curb appeal. Conversely, unsightly or overgrown shrubbery can detract from your home’s appearance, making it look like something out of a low-budget horror movie. Prune anything that grows or have a landscaping specialist look at what may need to be done such as tree or limb removal, heavy undergrowth removal or replacement of dead or dying shrubbery or plants.
Replace flowers or shrubs.
For both the enhanced appearance of your home and it surroundings, plant shrubs for garden beauty year-round. In addition, you can include various seasonal flowers or foliage to give your landscaping splashes of color. If you need to hide certain parts of your home such as a visible foundation, an unsightly HVAC unit, or electric meter, you can use flowering plants as camouflage. Popular selections can grow up to four feet in height. Be sure to plant them at least two to three feet from your home to allow for growth and enable access to repairmen.
Don’t forget the details.
Columbia SC outside home improvements for your home can also include additions to your front yard. You’d be surprised at how much you can improve curb appeal by installing brand new house numbers, an attractive front porch light fixture or a stately door knocker. Consider replacing your old mailbox with a newer version and installing a post lamp at the beginning of your driveway or walkway. Other ideas include garden additions like a birdbath, unique planter or a small garden statue.
Give your house a bath.
It sounds like a daunting task, but washing your home’s exterior can be one of the simplest and most-rewarding Columbia SC outside home improvements. Start by sweeping dirt, dust, cobwebs and pollen, working from top to bottom. After that, use a garden hose with a strong spray attachment or rent a pressure washer. If you don’t have a pressure washer and want to forego the expense of renting one, use a long-handled brush with soft bristles and a mixture of warm soapy water. Again, working from top to bottom, rinse the exterior walls with water. Should you decide to use a pressure washer, read the directions carefully. A high-powered spray can cause paint to peel and even damage your home’s siding. In addition, refrain from spraying electrical wires or wiring, light fixtures, outlets, switch plates or windows. After you’ve finished, inspect the entire exterior of your home. If it doesn’t look a great deal better after the washing, it may be time for a fresh coat of paint.
Remember the garage door.
Most homes these days have at least a two-car garage. Because of that, the garage door is probably one of the widest surfaces at or near the front of your home. If it needs attention, consider refinishing or repainting the garage door. In worst case situations, replace the garage door. As more and more homes are built with attached garages, there are a number of attractive garage door designs available. While garage doors aren’t extremely expensive, compared to the other suggestions, they are one of the more costly Columbia SC outside home improvements – especially if you include an automatic door opener, which is more than just a convenience, it’s a necessity. Either way – whether you repaint or replace – your garage door can be a stylish and important accessory to your home’s exterior.
You can find more articles pertaining to home improvements in the Columbia SC Home Improvements section of our site below Columbia SC Real Estate Categories in the column to your right.We also post tips daily on Twitter and Facebook and would love for you to follow us there as well.