January 2009

1 -- New Year's Day
15 -- Martin Luther King, Jr. Day
20 -- Inauguration Day
27 -- Chocolate Cake Day

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Be always at war with your vices, at peace with your neighbors, and let each new year find you a better man.
-- Benjamin Franklin

Existing-Home Sales Down in November

According to the National Association of Realtors®, existing-home sales weakened against a backdrop of an eroding economy.

Existing-home sales -- including single-family, townhomes, condominiums and co-ops -- fell 8.6 percent to a seasonally adjusted annual rate of 4.49 million units in November from a downwardly revised level of 4.91 million in October, and are 10.6 percent below the 5.02 million-unit pace in November 2007.

"The quickly deteriorating conditions in the job market, stock market, and consumer confidence in October and November have knocked down home sales to another level," said NAR Chief Economist Lawrence Yun, who expected a decline. "We hope the home sales impact from the stock market crash turns out to be short-lived, as was the case in 1987 and 2001."

“It is, therefore, imperative to provide incentives for home buyers to get back into the market. It also depends on how effectively Congress and the new administration can help facilitate the short sales process and unclog the mortgage pipeline -- impediments remain for some buyers with good credit.”

According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 6.09 percent in November from 6.20 percent in October; the rate was 6.21 percent in November 2007. As of late November, Freddie Mac reported the 30-year rate fell to 5.19 percent -- the lowest on record since the series began in 1971.

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A censor is a man who knows more than he thinks you ought to.
-- Granville Hicks

Lease-Options Can Benefit Buyers and Sellers

As the real estate market continues to stagnate in many parts of the U.S., lease options are once again becoming a popular way for buyers to get into a property.

A lease-option basically means you are leasing or renting a property with an option to buy it at a future date and predetermined price. The tenant/buyer usually makes an up-front payment to purchase the option -- called option money -- which varies considerably from deal to deal. In addition, the monthly payment (rent) is usually higher than in a normal lease and, depending upon the contract terms agreed to by both parties, part of the lease payments might be applied toward the down payment.

All terms should be fixed at the time the lease-option is signed, including purchase price, lease length, rent (fair market value), option money, and who will pay for maintenance and utilities. It would also be prudent to know in advance how escrow will be handled and who will pay for inspections, work and warranties in the event the option is exercised.

Lease-options are more common during a slow real estate market; during a hot market, most sellers will simply sell the property in the regular manner. However, this type of transaction can be used very effectively and benefit both the buyer and seller. It helps the seller get out of the ownership or management of a property while getting the buyer into a home and giving them time to financially prepare to purchase it.

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To think too long about doing a thing often becomes its undoing.
-- Eva Young

Improve Your Fireplace's Efficiency

Naturally, people use their fireplaces more during the winter months. There's something special about cozying up around a crackling fire on a cold winter day, or gathering around a fireplace during the holidays.

However, did you know many fireplaces are extremely inefficientand can skyrocket your heating bill? A roaring fire can exhaust as much as 24,000 cubic feet of air per hour to the outside, which must be replaced by cold air coming into the house from the outside. Your heating system must warm up this air, which is then exhausted through your chimney.

The fact is the fireplace that was designed to warm your house is actually doing the opposite and probably costing you hundreds of dollars in energy costs. However, don't sweat it. Following are some tips to help make your fireplace more energy efficient:

• If you never use your fireplace, plug and seal the chimney flue.
• Keep the fireplace damper closed unless you're actually using the fireplace. Claims have been made that keeping the damper open is like keeping a small window wide-open during the winter.
• When you use the fireplace, reduce heat loss by opening dampers in the bottom of the firebox, if it has them, or open the nearest window about 1 inch, and close doors leading into the room.
• Lower the thermostat setting to between 50°F and 55°F.
• Install tempered glass doors and a heat-air exchange system that blows warmed air back into the room.
• Check the seal on the flue damper and make it as snug as possible.
• Add caulking around the fireplace hearth.
• Use grates made of C-shaped metal tubes to draw cool room air into the fireplace and circulate warm air back into the room.
• Replace the fireplace throat damper with a top sealing damper -- which are installed at the top of the chimney and act like a storm door.
• Add a fireback, which is basically a cast iron plate that is placed at the back of the fireplace. It protects the back wall from fire damage and improves the fireplace's efficiency by absorbing the heat from the fire and radiating it back into the room.
• Install a fireplace heater, which pulls fresh air from the room, circulates it through a chamber that is heated by the fire, and blows it back into the room.

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Tina Lockner
1920 Donegal Drive
Woodbury, MN 55125

This eNewsletter contains information, facts and opinions from various individuals and organizations. This eNewsletter is provided on an "as-is" basis without warranties of any kind, either express or implied. I/We are not responsible for any errors or omissions. Consult with your doctor, fitness consultant, attorney, accountant, or other professional advisor when necessary. © 2008 eNewsletterSolutions.