Which States Have the Highest Closing Fees?

Thursday, August 10, 2006 -

NEW YORK, NY -Bankrate, Inc. announced that it has released its 2006 National Closing Cost Survey. The survey provides a comparison of lender, title and settlement fees in 51 geographic locations, which includes cities in all 50 states and the District of Columbia. Each state listing includes their current ranking, compared to their 2005 position, a detailed breakdown of average closing fees for that state, and a printable worksheet for consumers to compare average costs to their lender's fees.

In conjunction with the Closing Cost Survey, Bankrate commissioned a national poll conducted by Roper asking 1,005 consumers about their closing cost fees. Of the homeowners surveyed, 13 percent said that they paid more on their closing costs than what they were told by their lender. Those who found their lender's estimates to come in lower than expected totaled 8%. However, the majority of homeowners (60%) found that their closing costs were about the same as the estimate they received from their lender.

"No matter where you live, it pays to shop around," said Daniel P. Ray, editor in chief of Bankrate.com. "Our closing cost estimates, teamed with our mortgage rate table data, provide consumers the knowledge and confidence needed during the home purchasing process," Mr. Ray added.

Bankrate's Closing Cost Survey was conducted by obtaining eight to 10 good faith estimates in each state from the Web sites of online lenders. Researchers picked a ZIP code in some of the largest cities in each state and requested information on the closing costs for at $200,000 loan there. They requested fees on a 30-year, fixed-rate mortgage for a borrower with a 20 percent down payment and good credit to buy a single-family house. Average Closing Fees by State:

1. New York $3,887
2. Texas $3,578
3. Hawaii $3,407
4. Ohio $3,354
5. Florida $3,349
6. Connecticut $3,284
7. Alaska $3,265
8. New Mexico $3,239
9. Kentucky $3,206
10. Alabama $3,189
11. Oklahoma $3,181
12. Pennsylvania $3,175
13. New Jersey $3,158
14. Massachusetts $3,143
15. Oregon $3,137
16. Mississippi $3,102
17. California $3,097
18. Louisiana $3,056
19. Idaho $3,049
20. Georgia $3,046
21. Tennessee $3,016
22. Nevada $2,993
23. Colorado $2,988
23. South Carolina $2,988
25. Delaware $2,984
26. Wisconsin $2,972
27. Maine $2,961
27. Rhode Island $2,961
29. Vermont $2,950
30. Minnesota $2,919
31. Illinois $2,918
32. Utah $2,913
32. Virginia $2,913
34. North Carolina $2,905
35. Arkansas $2,904
36. North Dakota $2,895
37. Washington $2,887
38. Maryland $2,876
39. Nebraska $2,874
40. Iowa $2,841
41. West Virginia $2,823
42. South Dakota $2,817
43. Indiana $2,793
44. Kansas $2,787
45. Arizona $2,784
46. Washington, D.C. $2,772
46. Wyoming $2,772
48. Montana $2,737
49. New Hampshire $2,734
40. Michigan $2,714
51. Missouri $2,713

The study does not include taxes, other governmental fees and escrow fees.The Closing Cost Poll was conducted July 21-23 by Roper Public Affaires and Media, a part of GfK NOP. A total of 1,005 adults aged 18+ were interviewed across the United States. The margin of error for results based on the total sample is plus or minus 3 percentage points. The margin of error for subgroups may be higher.

Copyright © 2006 BEXT Inc.

Apartment wave forms on Chicago's horizon From the Crain's Chicago Business Newsroom As condos cool, rental construction heats up

August 20 08:28:00, 2006 By Alby Gallun
-----
Amid rising occupancies and rents, the downtown apartment market is on the verge of its biggest construction boom in nearly 20 years.

Developers will add more than 1,250 apartments to the downtown market this year and are working on plans to build as many as 8,000 units over the next four years, according to a report by Appraisal Research Counselors, a Chicago real estate consultancy. That would increase the total 44% to roughly 30,250 units.

Condominiums have been the property type of choice for many downtown developers, but some now are turning to apartments as the condo market slows.

The rental market, meanwhile, is surging after a long slump, as an improved job market boosts demand for apartments and thousands of units are converted into condos, shrinking supply. The number of units fell 25% since 1991.

"Supply has gone way down and with the rise in rents and occupancies, a lot of these projects are feasible right now," says Appraisal Research Vice-president Ron DeVries.

After bottoming out at 89.7% in 2002, the downtown rental occupancy rate hit 97.2% at the end of the second quarter, according to Appraisal Research.

With the upper hand over tenants, downtown landlords have nixed concessions like free rent, fueling a 13% increase in effective rents at luxury buildings over the past year.

The timing couldn't be better for a few developers who are close to completing projects, including Chicago-based Golub & Co., which is leasing units at the Streeter, a 481-unit tower at 345 E. Ohio St., and Fifield Cos. of Chicago, which is wrapping up the 450-unit Residences at Left Bank at 300 N. Canal St.

Yet the party is about to get more crowded. Five new buildings accounting for 1,976 units are expected to open in 2008. Dallas-based Lincoln Property Co. and Amli Residential of Chicago each have South Loop projects in the works, and Chicago's Magellan Development Group LLC is working on two East Loop towers with a combined 1,083 units.

On top of that, Appraisal Research is tracking projects that could add about 5,562 apartments to the market over the next four years. With a slowing condo market, some condo developers are thinking about selling their sites to firms that build apartments, or even doing it themselves.
The question is whether the exuberance of developers will come back to haunt them when the supply of apartments exceeds demand. Appraisal Research's Mr. DeVries says he's not overly concerned, noting that condo conversions have removed so many apartments from the market that there are actually fewer rental units downtown now than there were 15 years ago.

"I think the market is there to absorb" extra supply, says Matthew Lawton, who sells apartment buildings and lines up financing as senior managing director in the Chicago office of Holliday Fenoglio Fowler L.P. "Will it put a governor on . . . rent growth? Absolutely."

copyright 2006 by Crain Communications Inc.
My Scalar==1

For news headlines throughout the business day, go to: http://www.chicagobusiness.com
***********************SPECIAL OFFER******************************
GET 8 ISSUES FREE!
Special Subscription offer for
Crain's Chicago Business
http://www.ChicagoBusiness.com/subscribe
***********************SPECIAL OFFER******************************

In It for Long Haul? Might as Well Buy

Though Rising, Rates Are Still a Bargain

By Amy Hoak
MarketWatchSaturday, August 19, 2006; Page F25

CHICAGO -- Residential real estate has hit a speed bump.

Nationally, home price appreciation is slowing down from the rapid pace experienced by many markets over the past few years. Is this any time to be thinking about investing in a home? Of course it is -- if you're buying it for a place to live, not as a speculative investment, and can afford to take the leap.

"Owning a home is still financially not a bad deal, as long as you have the income to support the cost of homeownership," said Jim Gaines, research economist for the Real Estate Center at Texas A&M University. Another caveat: "You better figure on living there five or six years to make any kind of profit on the thing."

Investors who hope to profit quickly on home sales, known as property flippers, for the most part have come and gone from the market, said Raymond Sierka Jr., vice president and regional sales manager with Harris Private Bank.

At the height of the real estate boom, people would buy houses before they were built at preconstruction rates only to sell the homes for a profit a short time later, often before construction was even complete. Speculators in some markets often could sell the property for a 20 percent to 30 percent yield, he said.

A normalized real estate landscape boots out those speculators, said Anthony Hsieh, president of online lender LendingTree.com. "It's just too risky to speculate now," he said.

People now are "buying for the right reasons," said Diana Bull, a Realtor in Santa Barbara, Calif., and a regional vice president for the National Association of Realtors. Sellers no longer hold all the cards, she said, which is creating a more balanced market.

Below are several benefits of home shopping in a cooling real estate market -- the silver lining to news predicting the residential real estate party is over.

In a growing number of local markets, buyers have more time to think about a home before they make a decision on whether to purchase it. Last year, that often wasn't a likely luxury.

"Once you as a potential buyer found a house that met your needs, you had to jump on it right away," said Frank Nothaft, chief economist for Freddie Mac. "One thing that we're seeing nowadays -- compared to six or 12 months ago -- is many markets where homes are staying on the market longer."

Home sales are expected to decline in 2006, yet the year should finish as the third-strongest on record, according to a midyear report given by Nothaft last month. With fewer sales, more housing inventory is sitting on the market.

It's a change of pace for agents who not long ago didn't have many properties to show their clients, said David Drinkwater, a Realtor in Scituate, Mass., and regional vice president for the National Association of Realtors.

"Two or three years ago, there was a great deal of reacting in the marketplace because we had a smaller inventory pool to work with," Drinkwater said. That's not to say that a well-priced property won't move quickly in this environment, he said, but buyers need to educate themselves so they can recognize a housing gem when they see it.

Current conditions in many markets also afford consumers a better opportunity to negotiate.
"This market is forcing everybody to slow down and take their time," Bull said. And buyers have more of a say at the bargaining table.

In fact, getting a fair deal is even more of a priority for homeowners who can no longer bank on high appreciation rates to save them if they pay too much, Drinkwater said. If you slightly overpaid in a bidding war at the height of the real estate boom, high appreciation rates helped correct the error, he said. In many markets, no such safety net exists anymore.

Average home value appreciation nationwide should be around 7 percent for the year, and is predicted to slow even further to 6.2 percent in 2007, according to Freddie Mac. Local markets vary, however, and even as some markets are cooling, others are still on an upward climb.

Even if you, as a buyer, have the benefit of being more of a haggler than you could have been last year, still remember to look for a place that meets your needs and your budget, Nothaft said. Do the calculations and lay the groundwork before your house hunt begins.

It's easy to get caught up in the upward scooting of mortgage interest rates. But take the northward movement with a grain of salt.

Some people act like Chicken Little and feel as if the sky is falling when interest rates go up a quarter of a point, said Gaines of the Real Estate Center in Texas. Instead, keep it in perspective.

Interest rates are still way below what they were five or six years ago, he said. Even if the 30-year hits 7 percent by the end of the year, investors should keep in mind the double-digit rates of yesteryear.

The annual average for a 30-year fixed-rate mortgage was 16.63 percent in 1981, and worked its way down to 9.25 percent in 1991, according to Freddie Mac records. Homeowners may not get rates quite as low as what they could secure in 2004, when the annual average for the 30-year fixed was 5.84 percent. But relatively speaking, it's still a deal.

If you're in it for the long haul -- that is, buying a home with the intention to live in it for years -- a home is still a decent investment.

Consider this piece of information from the National Association of Realtors: Since record-keeping began in 1968, the national median home price has risen every year. In a balanced market, home values typically rise at the general rate of inflation plus 1.5 percentage points.

That's to say nothing of the tax benefits that come with owning your own home.

A look at the volatility of the stock market also proves the benefits of real estate as an investment, said Sierka, of Harris. "The downside of real estate is better than the downside on just about anything else," he said.

© 2006 The Washington Post Company

10 Simple Tips for Helping First-Time Buyers

Daily Real Estate News August 1, 2006

Here’s some basic information that can help clients who are purchasing their first home.

These tips come from Cindy Chandler, president of the North Carolina Association of REALTORS®; syndicated columnist Ilyce Glink, author of "100 Questions Every First-Time Home Buyer Should Ask"; the book "1,001 Tips for Buying and Selling a Home," by Mark Nash; and the U.S. Department of Housing and Urban Development website.

Know what you can afford to spend. Calculators on calculations include Bankrate.com and E-Loan.com can help.

Find out if you qualify for home-buying help. The U.S. Department of Housing and Urban Development, for example, has programs to help teachers, firefighters and others buy affordable homes. Federal Housing Administration loan programs offer lower down payments to help first-time buyers. Go to HUD's Web Site for details.

Get pre-qualified for a loan. First, get a copy of your credit history (free copies are available through AnnualCreditReport.com), then find a reputable lender.

Make a list of must-haves in a new home and another of would-like-to-haves. Prioritize both lists and be realistic.

Don’t spend a lot of time looking at homes you can’t afford. This reduces the temptation to overextend your budget.

Realize the neighborhood you choose is at least as important as the house. Make sure you are comfortable there. You can fix a house; a neighborhood is what it is.

Think about resale value. When you spot a home you like, consider how it will look to future buyers. For instance, proximity to a busy street can turn off some buyers.

Find out and calculate on-going maintenance costs and other factors like taxes, insurance and utilities.

Have the house inspected and carefully review the report. Come up with a negotiation strategy, remembering that the seller is obligated to fix a leaking roof but not a hole in the carpet.

Examine the preclosing statement provided by your agent or lender and ensure that you have enough cash to swing the deal when you go to settlement.

Source: Charlotte Observer, Kathy Height (07/31/2006)

© Copyright, 2006, by the NATIONAL ASSOCIATION OF REALTORS®

How to Get the Most from a Cooling Market

Daily Real Estate News August 2, 2006

A drop-off in buyer demand and rising home inventories has made putting a house on the market trickier for home owners whose properties appreciated during the boom and who hope to retain their gains, says a new report on RealEstateJournal.com, The Wall Street Journal's guide to property.

RealEstateJournal.com offers these tips for selling a home in a cooling market:

1. Size up the playing field. Study your local market and investigate other homes for sale, local asking prices and what buyers are paying.

2. Price competitively. If a home is overpriced, a buyer will dismiss it and move on to the next one. Price a residence just below what the market will bear.

3. Do your legwork. Use the Internet and networking to locate a buyer.

4. Don't delay. Point out to a seller that even if an offer isn’t all he had hoped, taking it instead of waiting for a better deal can save money in the long run.

5. Negotiate. Offer concessions to potential buyers, such as making minor fixes.

Small expenditures speed a sale and, ultimately, preserve price gains.6. Play up a home's assets.

Impress buyers with a repainted interior, clean closets, nice landscaping and an orderly garage.

Source: RealEstateJournal.com (08/01/2006)
© Copyright, 2006, by the NATIONAL ASSOCIATION OF REALTORS®

Remodeling: Home Owners' Seven Deadly Sins

Daily Real Estate News July 31, 2006

Remodeling isn’t always a good idea, says Holly Slaughter, brand manager and consumer-experience expert for RealEstate.com.Here are what she calls the seven deadly home-improvement sins to consider before committing to projects that may work against you and lessen your resale value.

Over expanding. Outdoing all the homes on the block is never a good idea because it makes the house more expensive than the others and therefore harder to sell.
Making your home into something it’s not. Changing the style or the architecture is usually a big mistake.

Changing the purpose of a room. Keep kitchens as kitchen and baths as baths. They were built that way for a reason.

Under budgeting. People routinely under budget 20 or 30 percent fewer dollars and underestimate even more in guessing the time the job will take.

Doing the job yourself. Unless you have first-rate skills, hire somebody who does.
If it’s not broke, don’t fix it. Don’t waste money on renovations that won’t pay off. Buyers won’t necessarily pay for what makes a seller happy. Siding, windows, kitchens and bathrooms are the home improvement winners, according to Remodeling magazine.

Neglecting regular upkeep. They may seem boring, but cleaning the gutters, keeping the house painted and trimming the shrubs are the most valuable home improvements.

Source: Marketwatch, Amy Hoak (07/30/2006)

© Copyright, 2006, by the NATIONAL ASSOCIATION OF REALTORS®

Pending Home Sales Index Rises Slightly

Daily Real Estate News August 1, 2006

Pending home sales, a leading indicator for the housing sector, have risen for the last two months, according to the NATIONAL ASSOCIATION OF REALTORS®.

The Pending Home Sales Index, based on contracts signed in June, increased 0.4 percent to a reading of 113.9 from an upwardly revised level of 113.5 in June, but is 9.6 percent below June 2005.

The index is based on pending sales of existing homes. A sale is listed as pending when the contract has been signed and the transaction has not closed, but the sale usually is finalized within one or two months of signing.An index of 100 is equal to the average level of contract activity during 2001, the first year to be examined, and was the first of five consecutive record years for existing-home sales.Market Strives for BalanceDavid Lereah, NAR’s chief economist, says the small rise in the index is good news, indicating that the trend is stabilizing.

“Once again, we have various housing indicators moving in different directions, which itself is an indicator of a market in transition,” he says. “The housing market is striving for balance – a process that will take several months.

"A quieting in the movement of indicators should restore confidence to home buyers who’ve been on the sidelines, waiting for the right time to get into the market, and now is the best time we’ve seen since the 1990s in terms of housing choices and flexible terms.”

Regional FluctuationsRegionally, pending home sales in the South rose 2.5 percent in June to 130.7 but was 4.8 percent below June 2005. The index in the Midwest increased 1.9 percent to 103.3 in June but was 11.9 percent below a year ago. The index in the West was unchanged, holding at 110.1 in June, and was 14.2 percent lower than June 2005. In the Northeast, the index dropped 6.3 percent in June to 99.4 and was 11.6 percent below a year ago.

— NAREditor's

Note: For more housing market statistics and research reports,visit NAR's Research Department at REALTOR.org.

© Copyright, 2006, by the NATIONAL ASSOCIATION OF REALTORS®

Daley urges extension of property tax cap

From the Crain's Chicago Business Newsroom
Mayor to send letter to Springfield urging action
August 02 16:56:00, 2006
By Lorene Yue
-----
(Crain’s) — Mayor Richard M. Daley is pressing the Illinois General Assembly for quick action to extend a cap on annual property tax increases.

At a Wednesday press conference, Mr. Daley said he will send a letter to Governor Rod Blagojevich and state legislative leaders asking the lawmakers to craft a solution to Cook County’s property tax issue and put it to a vote during the fall session.

"I believe it will be unacceptable to the homeowners and taxpayers of Chicago if Springfield stands by and does nothing while residents feel the burden of higher taxes which could have been controlled by the legislature," Mr. Daley said, in a statement.

Senate President Emil Jones Jr. (D-14th District) has not received Mr. Daley’s letter, said Cindy Davidsmeyer, spokeswoman for Mr. Jones.

"The Senate voted for it," she said. "The [Senate] president supports it."

Mr. Daley and Cook County Asssessor James Houlihan, who pushed for the original cap, were able to get the extension pass the Illinois Senate, but not the House.

House Speaker Michael Madigan (D-22nd District) was not available for comment.

Three years ago, state lawmakers authorized a 7% annual cap on increases to the equalized assessed valuation, which is used to calculate property tax bills.

Related story: The 7% solution

That law is set to expire this year and proponents have tried to extend the cap for another three years. Cap supporters have said that homeowners, who saved an estimated $200 million to $300 million, could see their property taxes double without the extension.
But their efforts have been stymied in part by Mr. Madigan, who has said that the cap shifts the tax burden to businesses.

The election for city mayor is next year.My Scalar==1

For news headlines throughout the business day, go to: http://www.chicagobusiness.com/
***********************SPECIAL OFFER******************************
GET 8 ISSUES FREE!
Special Subscription offer for
Crain's Chicago Business
http://www.ChicagoBusiness.com/subscribe
***********************SPECIAL OFFER******************************