20 things that can alter the value of your home
By Dana Dratch • Bankrate.com

     Here are 10 features that can add value to your home, and another 10 that could reduce the sales price.

Increase Home's Value
Here are 10 things that can add value to your home:

1. An updated kitchen. "Kitchens are critical," says Robert Irwin, author of "Home Buyer's Checklist." "Today, people like a big kitchen with a lot of workspace."
     They look for solid surface counters and high-quality flooring, such as wood, laminate, tile or stone. And they want newer appliances in working order.
     Even if it's not huge, it should have "countertops that are servicable, that aren't going to have to be replaced soon and cabinetry in good condition," says Alan Hummel, past president of the Appraisal Institute. "It has to be well-appointed and large enough to fit your needs."
     It also doesn't hurt if it opens onto another room. "A lot of families are looking for that openness," says Hummel.
     It helps to have a window over the sink, says Don Strong, a remodeler with Brothers Strong Inc., a Houston remodeling firm.
     Be wary if renovations are out of character with the community, such as granite countertops in a subdivision where plastic laminate is the norm.
     "Will you sell faster? Yes," says Hummel, CEO of Iowa Residential Appraisal Co., in Des Moines. "Will it sell for more? Not if the appointments you've done are significantly higher quality than the rest of the neighborhood."

CONTINUED >>

Dana Dratch is a freelance writer based in Atlanta.

Tips for How to Invest
In a Foreclosed Home
By Terri Cullen
From The Wall Street Journal Online

     Countrywide Financial reported Tuesday that borrowers with good credit are struggling: Payments were at least 30 days late on 4.56% of its prime home-equity loans in the second quarter of 2007. The delinquencies come on the heels of a record number of foreclosures.
     WHAT TO DO: Investing in foreclosed homes can be profitable, but novices need to tread carefully. Generally, you can't inspect homes prior to auction -- a home in need of major repairs could negate a bargain purchase. Some may come with hidden liens or utility bills to pay. State and local rules vary, so understand the process before bidding and know the existing homeowner's rights. Investors can find foreclosure listings at the county court clerk's office or sheriff's department. For a fee, Foreclosure.com and RealtyTrac.com provide up-to-the minute listings. A title-search company can help determine if there are any outstanding liens on a home. Also, consider negotiating directly with lenders to buy bank-owned homes. Countrywide, among other lenders, lists online homes it's selling.

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Late on Your Mortgage?
How to Keep Your Home
By Ruth Mantell
From MarketWatch

     As a growing number of borrowers fall behind on their mortgage payments, the smartest move they can make is to contact their lender, mortgage-industry experts and consumer advocates say.
     These days, there's more incentive for companies to work with borrowers to avoid foreclosure: Regulators and lawmakers, prompted by troubles in the mortgage market, are encouraging companies to assist troubled borrowers.
     Major lenders in the subprime mortgage market have agreed to a set of principles proposed by Sen. Chris Dodd, D-Conn., calling for servicers to try to modify loans before the interest-rate reset if borrowers will be unable to afford the new payments, among other actions.
     Lenders also have a financial incentive to keep you in your home: They can lose tens of thousands of dollars for each loan that goes into foreclosure, according to a June report from

the Office of the Comptroller of the Currency.
     Also, a bank's reputation can be sullied by borrowers who go into foreclosure.
     "We're in unusual times. The problems that are being experienced throughout the market are so severe that many lenders might be willing to be more flexible," said Allen Fishbein, director of credit and housing policy with the Consumer Federation of America.
     "There's a recognition that run-ups in foreclosures do not benefit lenders and could be devastating to the surrounding communities," he said.
     More borrowers are having trouble making their payments, some with interest rates that are resetting and rising, and some are defaulting on their mortgages. This trend is hitting the markets as Wall Street firms rack up losses from securities tied to these mortgages, and financing options decline.

CONTINUED >>

Homeowners Who Go Green
Face Neighbors' Objections
By Sara Schaefer Munoz
From The Wall Street Journal Online

     In neighborhoods across the country, there's a battle brewing: the environmentalists vs. the aesthetes.
     As "green"-minded homeowners move to put in new energy-efficient windows, solar panels and light-reflecting roofs, they are bumping up against neighbors and local boards that object, saying the additions defy historic-district regulations, will look ugly or damage property values.
     In Arizona, a man was recently ordered by his homeowners' association to take down a solar water-heating device from his roof or face a daily fine. In upstate New York, neighbors fought the installation of a wind turbine tower on a resident's 11-acre property, delaying the project by nearly a year. Even former vice president and outspoken environmental advocate Al Gore had trouble getting solar panels and a geothermal unit approved for his Nashville home. A local zoning board initially wouldn't consider the application for the solar panels. It then took an appeal, several redesigns and a property inspection before they were approved eight months later. (The community recently revised its ordinance to allow the devices.)
     David Bannatyne was tired of the drafty, stubborn windows in his early 19th-century home in Concord, Mass., and was especially fed up with paying his $5,000 heating bill each winter.
     But when he applied for permission to put in 17 new, energy-efficient windows last fall, the town's Historic Districts Commission denied his request, concerned that the windows wouldn't blend in with the home's historic character. After some debate, Mr. Bannatyne agreed to restore the windows instead. While he says they're now easier to open, he says his heating bills haven't changed. "I'm not doing the global warming issue any favors by keeping these windows," he says.

CONTINUED >>

Four Easy Home Improvements
That Won't Break the Bank
By Marshall Loeb
From MarketWatch

     If your house sorely needs a makeover, but remodeling is beyond your reach, the DIY Network's Amy Devers, host of "DIY to the Rescue," suggests trying these four simple fixes:

What's Wrong With This House?
Finding a Good Home Inspector
By Suzanne Barlyn
From The Wall Street Journal Online

     Buying a house means buying its problems. That's where home inspections come in.
     Many states and real-estate companies require sellers to disclose what they know about a home's problems, such as mice in the attic. But inspections, which are the buyer's responsibility, can reveal what the seller either doesn't know or isn't telling you. Big-ticket flaws can run the gamut from foundation cracks to a faulty septic system. Before closing on a property, buyers can ask sellers to fix problems, negotiate a credit for repair costs or agree to buy the house "as is." Walking away from the deal entirely can be a final option.
     However, locating a knowledgeable house inspector isn't easy. Real-estate agents offer referrals, but finding one yourself ensures an inspector's independence. The price of a general inspection varies depending on the home's age, size and location, but generally runs about $300 to $700. Added services, such as a septic inspection and well-water analysis, can push the cost into the thousands.
     For our test, we followed the buyer of a 29-year-old, four-bedroom house in Bucks County, Pa. The contract spelled out possible inspections. We needed five: a general inspection (including an inspection for termites and other wood-boring insects for an extra fee); a radon test; a lab analysis of well water; a septic inspection; and testing for possible leaks in an underground heating-oil tank.
     Web searches for several national organizations directed us to local inspection and testing professionals. Telling friends and acquaintances about the upcoming move also elicited referrals, including the name of an inspector we ultimately chose.

CONTINUED >>

Pending-Home Sales
Fell 12% in July
By Jeff Bater
From The Wall Street Journal Online

     Future home sales could tumble, according to a housing industry forecasting tool that delivers another swipe to the slumping sector.
     The National Association of Realtors' index for pending sales of existing homes decreased at a seasonally adjusted annual rate of 12.2% to 89.9 in July from June's 102.4, the industry group said Wednesday.
     The NAR index, based on signed contracts for previously owned homes, was 16.1% below the level of July 2006.
     In a news release, the NAR said the index shows existing-home sales are likely to decline in coming months as mortgage disruptions work through the housing market.
     "It's difficult to fully account for mortgage disruptions in the index, and our members are telling us some sales contracts aren't closing because mortgage commitments have been falling through at the last moment," NAR senior economist Lawrence Yun said.
     "These temporary problems are primarily with jumbo loans, and there are continuing issues for subprime borrowers, but there are no serious problems for the majority of buyers who qualify for conventional financing or FHA-insured loans," Mr. Yun said. "Some consumer concerns remain, but since mid-August the market has been stabilizing somewhat.
     "If lenders focus on the essentials of creditworthiness and adjusted valuations based on comparable sales, and ignore speculation on what might happen in the future, broader stabilization will come sooner rather than later," Mr. Yun said.
     The NAR's pending home sales index was designed to try measuring which way the housing market is going in the future. It is based on pending sales of existing homes, including single-family homes and condominiums. A home sale is pending when the contract has been signed but the transaction hasn't closed. Pending sales typically close within one or two months of signing.
     By region, the Northeast decreased 12.2% in July from June; it fell 10.0% from a year earlier. The Midwest decreased 13.1% in July from June; it fell 15.8% from last year. The South dropped 6.6% in July from June; it tumbled 15.2% since July 2006. The West decreased 20.8% in July from June; it fell 21.8% from a year earlier.