Does size really matter?

In the new edition of the Realtor magazine, they noted that while the size of the average American home has doubled since 1960, it has shown a decline in the past 3 years. An average American home is now 2,215 sq. ft. vs. a high of 2,277 sq. ft.

In the years before AIG and the housing market crash, I remember the kinds of housing that were in the market and that people were building. Yes, size DID matter then. We were house hunting in 2003 and really indulged by looking at wonderfully big houses, with soaring ceilings, oversized windows, almost intimidating foyers and double-sized kitchen islands. What made it even more wonderfully exciting was the endless financing possibilities that made these homes very affordable. I must say that the allure of SIZE really was quite hard for us to resist. So, our small family moved into a home where EACH person had approximately 1,100 sq. ft. to live and play (not to mention an additional 1,200 sq. ft. of basement). The first few months were exciting and really quite a dream. Who would not want a big house like that?


Looking back, I remember the nights when our daughter slept over at her friend's and it would just be me and my husband at home. We could hear our plates and conversation echo through the empty spaces of our home. Forget any random conversation if any one of you were in different parts of the house because there was no way you can talk to each other. I even got used to calling my husband's cellphone when he worked in the office. I had an extra large walk-in closet and the this gave me an excuse to "stock-up". Not to mention my walk-in pantry that made me spend hundreds of dollars at Costco each time.

In 2008, when we decided to move, we were thinking about what our next home should be and we decided that while our home was gorgeous, it simply did not suit our family and the way we wanted to live. We did not want to waste fossil fuel to heat empty spaces. We did not want to throw away all those food as they expired in our pantry (and while children all over the world were starving). And, the hardest part, is that I did not need all those shoes and clothes that I only wore once. Finally, we wanted to be embraced by space that is warm and welcoming.

We currently live in an average sized home in Guymon built way before 1960. A smaller home has allowed us to be closer to each other. We have changed our lifestyle to be more mindful of our space and our resources. I guess in the dawn of the new American economy, it is important for us to make size matter.

Foreclosure prevention 101

CNN reported today that the administration's foreclosure prevention plan which was launched in April 2009 has had minimal impact. The report noted that only 5% of trial modifications on loans owned or guaranteed by Freddie Mac were converted to long-term adjustments. In common language, this means that a low percent of homeowners who are over burdened by high mortgage payments have been able to work with their financial institutions to adjust their monthly payments and prevent foreclosure.

From the looks of it, the problem has been the difficulty for the consumers to connect with the right organizations. When a homeowner is behind in their payments, they will usually delay talking with anybody especially their banks or financial institutions- the ones they owe money to.

I can't tell you how often I have talked with homeowners regarding their housing dilemma and at the point of their crisis, they feel very helpless. It may seem hard to reach out for help. Also, the massive amount of paperwork required to qualify for this program may deter homeowners. Finally, there are numerous organizations out there that have been profiting from these homeowners and we should all beware of them.

If you or someone you know is in a precarious housing situation, I suggest that they get to know this federal program. The Federal Treasury has a concise (although a bit tedious) description of the program. The most current information on this program is available at the government website: www.makinghousingaffordable.gov. To get one-on-one help, contact a housing counselor a the Department of Housing and Urban Development (HUD) at 1-888-995-HOPE (4673).

Walking Around Town

Everyone gave us a warning about the "snow" we were supposed to get this weekend although I could sense a little excitement in those words of foreboding. We are, after all in Guymon, the dust bowl and home of the tumbleweeds. A little white powder would look nice especially near Thanksgiving. We woke Monday morning and this is the total accumulation we got.

Feeling inspired by the whiff of cool air (having lived in cooler Michigan for 10 years), I gathered my Uggs, coat, hat and gloves and decided to walk around town. Guymon is a small town where you can get anywhere in less than 10 minutes. This morning I decided to walk down to the coffee shop which is a good 10 blocks (and spent time with the Coffee Club). After coffee I also walked down to the office which was 6 blocks away. Cars drove by possibly wondering why I was walking. I certainly was the only one traveling by foot. Friends who I met at the coffee shop mentioned that people in Guymon are not used to seeing walkers and that people may actually think that I needed a ride. A friend of mine does not walk alone because of safety concerns.

I love to be out walking or running. I love walking because it gives me a chance to listen to, smell (Yes! and sometimes it does smell) and feel the vibrations of the city. Lots of cities are actually desirable for their walkability. Transforming a city only necessitates a change in behavior. And, imagine the fossil fuel we can save my not making those unnecessary trips.

So, if you see me walking or running, don't worry about me. I am just getting to know my hometown.

First Time Home Buyer Credit Extended!!

Last Friday, the White House signed the extension of the tax credit program for first time home buyers of up to $8,000 and also added tax credits for repeat home buyers for up to $6,500. Repeat buyers must have been in their homes for at least five of the eight years. Each of these credits were extended for home purchases with signed sales contracts by April 30,2010 and which close on or before June 30, 2010.

Click here to learn more about the eligibility and requirements.

Please help spread the word!

How much is my home worth?

Listing at the right price is one of the most important decisions to make when selling a home. I always tell clients that when they are selling their home, the bottomline is the the price. Be it a beautiful home or a fixer-upper, someone out there will be willing to buy your home....at the right price.

How can we figure out this "right" price?

The right price is not how much you bought your house for (the environmental and economic conditions may have changed from the time you bought to the time you plan to sell). The right price is certainly not how much it cost you to improve or upgrade (some upgrades usually do not add value). And, it is not the price you think it is worth because your home is special to you.

One rule of thumb I look at is price per square footage. In Guymon, this tops at around $100 per sq. ft. This means that the home is move in ready, updated and includes central heat and air and a garage. If the home needs an updated kitchen or a is in disrepair, the price per sq. footage can go as low as $30. If the home has unique features or is in a special location, the price may climb to $120 per sq. foot.

The "right" price is where supply and demand intersect in the marketplace. In a marketplace where there is not much supply of housing (i.e. Guymon), sellers can pretty much drive prices higher. In the past year, while the price of housing has declined all over the country, the price of housing in Guymon has been slightly increasing. This is because there is not enough stock available. Conversely, there is still much demand for housing as the population continues to grow and workers coming in to the community decide to stay.

The best way to determine the "right" price for your home is to look at how much comparable properties have sold in the past 12 months and how much comparable properties are being sold currently in the market. A knowledgeable real estate agent should be able to help you analyze comparable properties in the market.

Why Guymon?

When I was in college, we used to paint art for fun. I was not good but, I did have my moments of inspiration. Sometimes my friends and I would spent Friday evenings with San Miguel (THE Filipino beer), a piece of plywood, paint and brushes. We would spend hours on our "community art" project. Those turned out better depending on the company but, our work was always interesting. My all time favorite subject to paint was clouds. Landscapes would always have clouds. Even abstracts would have some cloud backgrounds. Clouds in full sun, clouds concealing the moon. My husband (then boyfriend) used to tease me about my "cloud series". I had pages and pages of splatters of white, blue and gray.

Thursday when I pulled out of Walmart, I looked North and it was as if I was staring at my Cloud Series No. 99980, beckoning right in front of me in the natural canvass of Guymon, Oklahoma. It was perfect day in Guymon! There was the gentle wisp of air and the perfect touch of the rays of the sun. The clouds were floating in the endless sky. For those of us who think, "Why Guymon?", it is because of those moments when life becomes art and flawlessly beautiful.

P.S. I ran back home to try to catch the moment. Here is a picture by the football field and another one taken by my front yard. I could not really capture the moment on pixels but this is a good enough reminder.

Are there first-time homebuyers out there?

It is October and one can tell that the seasons are changing- with the erratic hot-cold weather and the changing color of the leaves. With this change in the season also comes the tail-end of the federal government's credit program for first time home buyers. The government offers up to $8,000 tax credit for first time home buyers but, this program will be good only for transactions that close on or before Nov. 30, 2009. That is exactly 40 days from today!

One would think that this credit would entice more first time home buyers. Let me tell you that while we have worked with some families who may qualify and who are actively looking, we have not seen an extraordinary amount of interest from first time home buyers here in the Oklahoma Panhandle.

I have searched the economic and real estate news to see what may be reasons for what seems to be little effect in our hometown. I have heard that the interest rates may have increased. But, looking at national mortgage rates, we are seeing still lower rates than a year ago (although there was a slight increase from 3 months ago). Another factor that has been named as culprit is the rising unemployment. There were reports of increased jobless rates in the past quarter and this may lead to unease and insecurity.

While I think that people may be acting cautiously right now because of fear or reality of job loss, I think there is just not enough information out there about this very attractive tax credit. There is no time to waste- please spread the word. We all know that shopping for a home and the process of actually closing on the transaction takes times. In fact, to avail of the tax credit, one probably needs to make an offer on a home tomorrow. Don't delay!

P.S. The feds are still thinking about the possibility of extending this credit. Stay tuned.