Housing policies caused the financial crisis, according to Peter Wallison, a scholar at The American Enterprise Institute. Wallison lays all the blame on Fannie Mae and Freddie Mac, along with government intervention.
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Not long ago, buying a Kansas City home was the best investment you could make. Not only did it provide a place to live, but it provided instant wealth for many homeowners through rapid home-price appreciation. Renting seemed risky. If you didn't own a Kansas City home, you'd miss out on equity buildup that would bankroll a move to a bigger, better home.
In this market, the realistic way to look at buying a Kansas City home is to secure a place you want to live. Buying a Kansas City home doesn't guarantee you'll make a big return on your investment. You might if you stay long enough. Over the long term, home-price appreciation usually outpaces the inflation rate. However, this varies from one locale to the next.
If Your Kansas City Home Doesn't Work Out
If you buy a Kansas City home that you find out doesn't work for you and sell it again within a year or so, there's a chance you'll lose money when you take into account the costs of buying and selling.
No one knows for sure when the economy will substantially improve. Last year, some economists predicted a double-dip recession. That appears to be less risky at the moment. In the fourth quarter of 2011, the nation's economic output grew at an annualized rate of 2.8 percent, which is not recession territory, but is not considered good enough by some economists.
Kansas City Home Market Prediction
Will 2012 be the turnaround year for housing? Lawrence Yun, the National Association of Realtor's (NAR) chief economist, thinks that the combination of increasing home sales, record-low interest rate and low home prices "demonstrates a market in recovery."
Other good news for anyone thinking of buying a Kansas City home is the recent increase in consumer confidence and the decrease in the inventory of homes for sale to a level not seen since March 2005, according to NAR. Yun thinks the drop in inventory will contribute to price stabilization and possible modest price growth in the near future.
Problems for Kansas City Home Buyers
There is pent-up demand on both the buy and sell side. One problem for those considering buying a Kansas City home has been the lack of quality inventory. That may improve this year as some sellers decide they're tired of waiting for a better time to sell.
Buyers have the advantage of low interest rates and home prices. Buyers considering buying a Kansas City home who can find the right house and stay put for five to 10 years will probably be happy they bought now.
Your FICO score is not a regular credit score. It is the brand of score most widely used in mortgage qualification. The FICO score was developed by Fair Isaac and a company known for developing risk assessment models.
It is a complex equation that is not fully disclosed. The information used to calculate your FICO score is found on your credit report and much of it is interdependent in the calculation. This makes it an extremely complex formula.
There are five main areas of the FICO score calculation:
The first and largest portion is your payment history, and it accounts for 35% of your FICO score. This looks at how well you do at paying you bills on time. It takes into account any late payments you might have and looks at the severity, how recent, and how often it happens. The formula reviews a total of seven years of your payment history.
The next 30% is your utilization. This is calculated by dividing your outstanding balances by your account limits. This is done across all your accounts and on an account by account basis.
How Credit History Affects Your Fico Score
15% of your FICO score calculation is your credit history. It is better defined as – how long have you had credit? There are two sub-factors that are considered: The age of your oldest account and the average age of all your accounts.
Inquiries make up the next 15%. These are better defined as how many times your credit report has been reviewed. There are two different types – soft and hard.
Soft is when anyone like yourself, an employer or insurance company, checks your report. Hard is when a creditor checks your report after you have applied for a new account.
The last 10% is your credit mix. This takes into account the credit that you use. There are few rules discussed, but using several different types of credit is in your favor. Many of these factors are interdependent which makes understanding and attempting to estimate your FICO score nearly impossible.
What is really important is that you know what goes into it and how you can impact your FICO score on a day to day basis. You can learn more about what goes into a credit score, and the complexity of the system, by reading this article at BestCredit.com.
While Kansas City home additions such as an outdoor deck or a garage can instantly add resale value to your home, other types of Kansas City home additions are made simply to satisfy the current homeowner.
Kansas City home additions that require construction may also require a permit. Permits are the way a state regulates construction practices within its jurisdiction.
The home upgrades and additions that may not require a permit are:
- Fences six or fewer feet high
- Platforms
- Decks 30 or fewer inches high
- Plumbing work
- Electrical work
- Upgrading or replacing fixtures
While the home upgrades listed above are fairly common, they're not the most popular.
Here are three of the most popular Kansas City home additions.
Jacuzzi
A Jacuzzi is one of the most popular Kansas City home additions partly because of the high-powered water's ability to rejuvenate, refresh, and relax the user. Jacuzzis assist (and in some cases speed up) the healing process of muscle aches, back pain, and other injuries. Other Jacuzzi use benefits include improving your flexibility, increasing muscle endurance, and soothing the stress of high blood pressure patients.
The water jets in a Jacuzzi also help alleviate fatigue by aiding the release of endorphins into the body while allowing harmful toxins to leave the body.
Jacuzzis vary in price from just under $1000 for basic units to over $14,000 for a top-of-the-line model.
Adding a Jacuzzi to your home can provide multiple health benefits for years to come!
Swimming Pool
You don't need an Olympic-size swimming pool to make a splash in the world of home water sports. Swimming pools come in a wide range of styles from in-ground to indoor.
Starter swimming pools, such as the above-ground Intex Ultra Frame 16-foot set, can be obtained for around $650. Yet, more elaborate in-ground pools can cost tens of thousands of dollars.
Home Sauna
The heat produced in a sauna provides your skin with several benefits. As the temperature in a sauna rises, the heat causes your blood vessels to dilate. The increased blood flow helps your muscles relax.
As your heartbeat speeds up, you get a mild cardiovascular workout while sitting in the sauna. Also, the profuse sweating (caused by the heat) helps toxins exit from your body.
Introductory-level home saunas can be purchased for a little over $1000, a small investment for increased health benefits.
Kansas City home additions can both personalize and add personality to your property. What popular home additions would you add to our list above? Leave a comment below.
Whether you're trying to sell your Kansas City home because you're moving or if you're just trying to flip a property for profit, you need to know about how the real estate market works and what you can do to sell your Kansas City home easily.
Paint Your Kansas City Home
Paint your house in neutral colors; this will allow potential buyers to more easily picture themselves living in it. Light candles or bake cookies, so potential home buyers are greeted with an aroma they can relate to. An atmosphere they feel welcome in may determine whether they choose to buy your Kansas City home.
Get a Mechanical Checkup
Have someone check your air conditioner and heating before listing your house. Buyers generally don't want a home that needs large investments, like a new furnace, so if the AC and heating are fine, it can appeal to more buyers.
Get a Kansas City Real Estate Agent
You may not always want to listen to what they say, using the services of a trained real estate agent will save you money in the long run. They do know what they're talking about. You may not like some of the things your real estate agent tells you, following his or her advice will help you sell your Kansas City home faster and for more money.
While you may think that selling your home yourself will save you a commission, statistics show that using the services of a real estate professional will get your Kansas City home sold quicker and with much less hassle than selling it yourself.
Check Your Curb Appeal
Curb appeal is a major factor in whether or not buyers will stop to look at your home. Your house and yard will look better maintained if you mow the lawn and trim the shrubbery. Keep in mind that the first impression is a lasting one, so present the exterior of your house in its best light.
A home that looks inviting is far more appealing to buyers than one that looks neglected. It will definitely impact how many people coming to view your home.
Get Rid of Pets
If you have a pet, your home will have an odor to potential buyers who enter. You get used to your home's scent from your pet and may not think this is an issue, but be aware that others can sniff out your pet's smell as soon as they walk in the door. Take measures to eliminate the odors, so buyers won't be put off.
At the same time, don't overwhelm potential buyers with air fresheners, candles or other fragrances. You may offend the buyer, set off their allergies and even drive them to leave your home without seeing it in full! Why compromise a sale by making the potential buyer feel like they have to rush through the viewing? Put potpourri inside of a bowl if you want a nice-smelling home.
There is a lot to consider when selling a Kansas City home, but the time you spend learning what is important and sprucing up before your home goes on the market will certainly pay off!
Find more tips for helping you sell your Kansas City home here.
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