This morning on Money for Breakfast I interviewed Kirsten Kemp Becker, a real estate expert and host of a new show on TLC (The Learning Channel) called Hope For Your Home. It's a show that focuses on homeowners who have hit a financial rough patch. At a time when 1.3 million properties have entered into foreclosure in the first six months of this year, it couldn't come at a better time.
The premise of the show is to give participants $10,000 to fix up their homes over a 30-day period. The show tells homeowners exactly what to do to either appreciate the value of their homes so that they can refinance for a better rate and cheaper monthly mortgage or tells them how to prepare the home to sell. So far, Kirsten said they've had some great success. One home made an $80,000 profit off a $10,000 investment and, in another case, a homeowner's monthly mortgage payment was reduced by 25%!
Hope For Your Home debuts this month on Saturday nights at 8:30 P.M. EST. I'm really looking forward to watching it. I'd like to see what I can do to improve the value of my home with minimal investment.
If housing values continue to drop, there will be a "Tipping Point" where many home owners will finally beleive that they may never see their homes worth what they paid for them. At this point, strugging to pay a big mortgage may seem fruitless. If this occurs, and the prospects of selling their home seems pointless (they owe more than it's worth) many more may home owners will walk away from their homes at a faster rate. This could start a chain reaction causing many more and more home owners to walk away.......
September 1, 2008 at 12:02 pm
Bob Pearson-Ret.R/EBrkr
We will see very little recovery in the resale R/E market until the mortgage companies & banks go back to the minimum down payments (10-20%) and realistic qualifying rather than the subsidized government give-away type loans introduced in the past 8-10 years..Those type of loans only create a quicksand value system that is unsustainable due to the unaffordability of variable and increasing interest rates..It is hard for me to believe that a 1200+- sq ft house can't be built for less than $100 K, plus the cost of the land, which should be moderated by now with the cancelled land-purchase contracts..I'm a former developer/RE Broker-Owner/ & an Economics Major..
September 1, 2008 at 11:24 am
Rob
I seriously doubt these numbers. No bank is going to assume a home is more valuable as a result of upgrades without seeing a comp. The house down the street from me was bought for 600k, they worked on it for 3 month putting about 50k in upgrades in, and couldn't even sell it for 550k. It's ugly out there.
August 25, 2008 at 11:20 am
aboutthis blog
Alexis Glick is an anchor for FOX Business Network. Prior to joining FOX, Glick served as a correspondent for the Today Show and co-anchored the third hour of that program. Before her stint at NBC News, she was the senior trading correspondent for CNBC and reported from the floor of the New York Stock Exchange.
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Dana Swan
If housing values continue to drop, there will be a "Tipping Point" where many home owners will finally beleive that they may never see their homes worth what they paid for them. At this point, strugging to pay a big mortgage may seem fruitless. If this occurs, and the prospects of selling their home seems pointless (they owe more than it's worth) many more may home owners will walk away from their homes at a faster rate. This could start a chain reaction causing many more and more home owners to walk away.......
Bob Pearson-Ret.R/EBrkr
We will see very little recovery in the resale R/E market until the mortgage companies & banks go back to the minimum down payments (10-20%) and realistic qualifying rather than the subsidized government give-away type loans introduced in the past 8-10 years..Those type of loans only create a quicksand value system that is unsustainable due to the unaffordability of variable and increasing interest rates..It is hard for me to believe that a 1200+- sq ft house can't be built for less than $100 K, plus the cost of the land, which should be moderated by now with the cancelled land-purchase contracts..I'm a former developer/RE Broker-Owner/ & an Economics Major..
Rob
I seriously doubt these numbers. No bank is going to assume a home is more valuable as a result of upgrades without seeing a comp. The house down the street from me was bought for 600k, they worked on it for 3 month putting about 50k in upgrades in, and couldn't even sell it for 550k. It's ugly out there.