Home Heating Will Wear Out Wallets
By Broderick Perkins

     As sure as year-end holiday decorations hit the stores before Halloween, the annual home heating fuel cost forecast will put a damper on season's greetings.
     The U.S. Energy Department's (DOE) 2007-2008 "Short Term Energy and Winter Fuels Outlook is bleak thanks to both colder weather, than last year and record high fuel costs.
     Without the cooperation of Mother Nature and oil barons, conservation, weatherization and other fuel saving techniques will be key to saving on heating costs this heating season.
     Overall, when the four most common types of central heating were considered -- oil, natural gas, propane and electricity -- the DOE said the average cost of heating homes during the heating season will rise nearly $90 or 10 percent this winter compared with last year.
     Households warmed with heating oil will really get burned. The average heating oil bill is expected to rise by a whopping $319 this heating season, compared to last year. That's an increase of nearly 22 percent and a lot of holiday cheer going up the flue.
     US sweet crude reached a record high of $84.05 a barrel last week and later fell back a bit, but remained above $80 a barrel. Low surplus production, weak inventories, and strong worldwide demand are contributing to recent high crude oil prices,which are expected to fall to the $70 a barrel range later in the heating season.
     According to the National Oceanic Atmospheric Administration's (NOAA) most recent projection of heating degree days, winter in the Lower 48 is forecast to be 4 percent colder compared with last winter, even though it will also be 2 percent warmer than the 30-year average (1971 to 2000).
     The average propane heating bill will rise by $221, a 16.3 percent increase. For those heating with natural gas, the average heating bill will expand by $78 or 9.5 percent. The average electric heat bill will rise only $32 this season, an increase of 3.9 percent, according to the DOE.

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When a Walk-Through Reveals Unexpected Problems
By June Fletcher

Question: I recently put in an offer on a vacation home in the Catskills, with a $10,000 earnest-money deposit. It was occupied by tenants when we saw it. The offer was accepted, we had the home inspected, and the tenants left. But this morning we did our final walk-through before settlement, and discovered damage that wasn't visible when the tenants were living there. We're very upset, and aren't sure that we want to settle now. What should we do?

Answer: If you're not sure what to do, the best advice often is to do nothing.
     So put that pen down. Until you sign those final settlement papers, you still have the upper hand in negotiations.
     Of course, everyone else involved in the deal, from the seller to the lender to the brokers, is probably pressuring you to settle right now. But that's because they don't get paid until you sign. That isn't to say that decent people who value their professional reputations won't return your calls once the ink is dry on your deal, but the urgency will be gone. If you're really worried, ask to delay settlement for a few days. You'll feel like Madonna, because you'll instantly have everyone's undivided attention.

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Master of the house
By Ben Crawford, CGR, GMB

     In today’s time-starved world, many people seek the refuge of a steaming hot shower or an aromatherapy bath to soothe away the worries of the day. Master baths not only offer these comforts, but depending on their location in the house, they also are the perfect spot to spend some alone time.
     Master baths don’t have to be huge. The trend is to make them as luxurious as possible across all price points, as good design becomes important to even the most entry-level of homeowners. How can this be

accomplished? With a little ingenuity. For example, while a nice long soak in a whirlpool tub sounds wonderful, most homeowners rarely find the time to indulge. In fact, studies show that whirlpool baths are used an average of four times a year.
     To further enhance the shower’s spa-like experience, warm towels are a must. Moving beyond the heated towel rack, warming drawers are finding their way into bathrooms to keep towels toasty. When built into vanities they look sleek, not like kitchen stowaways. In addition, the perceptions of heated tile floors in the bath range from nice-to-have to gotta-have-it.
     When it comes to vanities, sometimes separate isn’t just equal, it’s better. The trend is to design two separate vanities rather than two sinks in one. This not only enables more elbowroom on busy mornings, but also provides additional storage space, an indulgence every homeowner loves. To help make the dual vanities appear lighter, setting them on legs or feet makes the pieces appear to float and take up less space. This design trick also makes cabinets look more like furniture, another popular trend.
     Separate water closets are popular for the privacy they afford, but storage often can be a problem. A traditional tank topper or cubby unit can provide the ideal spot for cleaning supplies and other necessities.
     Homeowners appreciate rooms that cater specifically to their needs, and they will reward remodelers that achieve this elusive goal with additional business and referrals. Keeping an eye on trends and incorporating even just a few of the latest and greatest of them into your designs is a win-win situation. Spa-like master baths not only add to the enjoyment of a home, but in the long run they also add to a home’s resale value — two things the entire family can agree on.

Crawford Renovation is an award winning full service Design/Build Company. Mr. Crawford is a Certified Graduate Remodeler and Graduate Master Builder for the National Association of Home Builders and is a member of the Remodelers Council for the Greater Houston Builders Association. He can be reached at 713-463-8600.

Terabitz's Tools, Features Help Gather Real-Estate Info
By Lauren Baier Kim

Note: This is the sixth installment of "The Smart Surfer," a feature that reviews real-estate Web sites and tools available online for home buyers/sellers and investors.

     Web site: At Terabitz.com, users can create, save and share custom "mashups" or Web pages containing data about a particular neighborhood in the U.S. The Web site, a Palo Alto, Calif., startup, launched last month and is geared to home buyers, sellers and those searching for a rental.
     The Web site collects publicly available information such as census data, crime statistics from the Federal Bureau of Investigation and government records. Additional data comes through partnerships with Google Base, some Multiple Listing Services and Craigslist.
     In addition to real-estate information, Terabitz layers in data that would be of interest to those looking to purchase or rent a home in a particular neighborhood: such as area photos, demographics, and the locations and phone numbers of local stores, places of worship, banks and post offices.
     Coolest functions: Individuals can drag and drop "Bitz" (or windows) of information on their pages -- including data and tools such as a home-value calculator, real-estate listings, recent home sales, crime statistics and area attractions like restaurants, cinemas and schools.
     How it works: Visitors who log in can click on the "Take Snapshot" tab to save the pages ("dashboards") they create and share them with others through email or instant message. This month Terabitz plans to extend its offerings, adding features like for-sale-by-owner properties, new construction listings, and rental and foreclosure properties.

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-- Lauren Baier Kim is a senior editor at RealEstateJournal.com.

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Houston 's Twilight Zone: Projects Rise in Odd Spots
By Kris Hudson
From The Wall Street Journal Online

     This sprawling metropolis has welcomed developers since 1836 when land speculators Augustus and John Allen founded the city by carving a 6,000-acre swath of coastal prairie into home sites sold for $1 per acre.
     Now, that wide-open approach has come back to haunt Houston, the nation's fourth-largest city and the only major U.S. city without zoning laws to control development. Plans to build a 23-story

condominium tower among the
million-dollar homes of two stately neighborhoods here has appalled affluent residents and put local politicians in the hot seat.
     Angry residents have hired a lawyer to fight their cause. Houston Mayor Bill White has pledged to use "any appropriate power under law" to scale back or cancel the development. The problem is, without zoning laws to regulate land use, the city can do little to thwart the project other than apply traffic restrictions and write sternly worded letters.
     The project's developers, two Houston natives who grew up just blocks from the site, vow to push forward. They've already received many of the approvals required under the city's current guidelines.
     "We expect to be treated equitably and in a nondiscriminatory fashion" by the city, said Matthew Morgan, president of Buckhead Investment Partners Inc., who is developing the $100 million-plus project with longtime business partner Kevin Kurtin, CEO of the company.
     The condo-tower dustup is just the latest in a string of odd situations allowed by Houston's lenient land-use rules. Rowdy cantinas, rock-crushing operations and commercial dumps sometimes pop up in residential neighborhoods. Condo towers sprout next to schools. A pay-by-the-hour motel operates less than a block from a Baptist church.
     In most cities, zoning laws would prohibit an intensive commercial use, such as a fast-food restaurant, from setting up shop on a residential street. Houston, however, regulates land use mostly through deed restrictions, which are typically crafted by the developer of a subdivision and apply only to that area, dictating issues such as lot size and construction design. Deed restrictions are usually enforced by civil lawsuits, whereas zoning is a matter of city law.

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If You Moved in 2006,
You May Get Tax Savings
By Marshall Loeb
From MarketWatch

     Were you one of the 25 million tax-paying Americans who changed homes in 2006? If so, you might be due big tax savings. According to real estate attorney and columnist Bob Bruss, your household moving expenses can be deducted as an adjustment to gross income.
     Deductible expenses include any direct household moving costs, such as hiring a moving van, shipping expenses, moving insurance, and airline, train or bus fare to your new city. If you drive yourself, you can deduct gasoline and oil bills. The cost of lodging en route (but not meals) is also deductible.
     To qualify, however, you must have also changed your job location last year. You could have started work with a new employer or even just switched locations for the same employer. If you became self-employed or started your first job, you are also eligible. The catch: It must be full-time work.
     Here's where it gets a little confusing: Your new job site must be at least 50 miles farther away from your old home than was your old job location. So if you lived five miles from your old job in your old home, the new job must be 55 miles (five miles plus the required 50) from your old home.
     The other rule requires that you reside in the area of your new job and work full time for at least 39 weeks out of 52 after you change homes. Self-employed? You must have worked in the vicinity of your new job full time for 78 weeks out of 104 after moving.
     But what if the 52 weeks aren't up until after the tax deadline this April? You can still claim the deduction; if, after filing your taxes, you become ineligible, you'll have to pay the additional tax. Or, don't claim the moving-expense deduction during tax time. Once you are sure you're eligible, you can file an amended return on IRS Form 1040X and claim the deduction then.

If a House Lingers on the Market, Is There Something Wrong With It?
By June Fletcher
From The Wall Street Journal Online

     Question: I've been shopping for a home, but notice that many of them have been on the market for many months.  Does this mean that there is something wrong with them?
     Answer: There could be, but more likely the fault lies with the owners, who are still clinging to the fading fantasy that their house is worth what it was at the peak of the market more than two years ago.
     It's painful to give up dreams like that, especially when you've already mentally spent the money -- or worse, maxed out the credit card -- on a new Lexus, a berth for your heir at Harvard, or an extended tour of Tuscany. That's why overall existing home sales are dropping sharply, and the supply of homes is growing alarmingly, even while prices remain relatively flat.

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