AOL Real Estate - Blog http://realestate.aol.com/blog AOL Real Estate - Blog http://realestate.aol.com/blog/media/feedlogo.gif AOL Real Estate - Blog http://realestate.aol.com/blog en-us Copyright 2013 Weblogs, Inc. The contents of this feed are available for non-commercial use only. Blogsmith http://www.blogsmith.com/Sold for $30 Million: Miami Home A-Rod Shared With Cameron Diazhttp://realestate.aol.com/blog/2013/05/24/alex-rodriguez-miami-home-cameron-diaz/http://realestate.aol.com/blog/2013/05/24/alex-rodriguez-miami-home-cameron-diaz/http://realestate.aol.com/blog/2013/05/24/alex-rodriguez-miami-home-cameron-diaz/#commentsFiled under: ,

Alex Rodriguez's Miami home

curbed logoBy Rob Bear

Baseball star Alex Rodriguez dreamed up this bayfront Miami mansion around the time he was dating actress Cameron Diaz. The Yankees regular spent an estimated $15 million constructing the custom love shack, complete with nine bedrooms, 13 bathrooms, and 19,000-square-feet of luxury.

But soon after his relationship with Diaz soured, A-Rod lost interest in the property altogether, and put it up for sale for a whopping $38 million, before pulling it from the market in January. It was then reportedly rented to a coterie of Saudi sheiks, before finally selling -- perhaps to those very royals, but TMZ sources say a celebrity -- for $30 million. A-Rod may have lost the girl, but at least their would-be family home netted him a cool $15 million.

This article was originally published on Curbed.

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See more on Curbed:
German Power Plant Goes Incognito as a Garden Hedge
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Alex Rodriguez Doubles His Money After Selling Miami Beach Mansion

 

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]]>alex rodriguezalex rodriguez cameron diazAlex Rodriguez Miami homecameron diaz homeluxury real estatemiami real estateyankees a-rodCurbed2013-05-24T15:30:00+00:00Underwater Borrowers Becoming Accidental Landlordshttp://realestate.aol.com/blog/2013/05/24/accidental-landlords/http://realestate.aol.com/blog/2013/05/24/accidental-landlords/http://realestate.aol.com/blog/2013/05/24/accidental-landlords/#commentsFiled under: ,

By Diana Olick

Maria Wells said she never intended to be a landlord. She sells real estate; she doesn't invest in it. Now the Florida resident owns two properties. One was her son's, but he had to move to take a new job. The other was hers, but she got married and moved in with her husband. She can't sell either because she is underwater on both mortgages, so she rents them. Maria is one of a growing cadre of what the Realtors have dubbed "accidental landlords."

"When I get enough equity, I will definitely sell," said Wells, who has been able to manage the properties because the rental market is so good that the income covers the mortgage payments and taxes. She does not use a property manager, as she wants to make sure the homes are well-maintained and keep their value. She's had some good tenants, but also some nightmares.

"One of the tenants certainly surprised me. They decided to change a water filter and go out of town, and then I got the call that 500 gallons of water had gone into my home. Fifty thousand dollars later...," she recalled.

Despite rising home prices, 13 million borrowers, or 25.4 percent of all homeowners with a mortgage, still owe more on their mortgages than their homes are worth, according to a new report from Zillow. So-called "underwater" borrowers would have to pay money into their loans to get out of their homes. Another 9 million borrowers, while not entirely underwater, likely do not have enough equity in their homes to afford to move.

"When the market dropped, many people emerged with a life event prompting their need to move," said Todd Allen, a Realtor in Northern Virginia who has worked with several of these homebuyers. "Fortunately for many in the D.C. metro area, with higher incomes and lending guidelines softening a little, individuals and families were able to qualify for the purchase of a second home, but their new landlord status did not necessarily generate positive income. Often they incur a loss. Furthermore, many of my own clients have learned many other downfalls in being a landlord."

Arati Patel built a house in Greenville, S.C., in 2007, but when she was forced to move to Washington, D.C., for a new job, she knew she couldn't sell it for enough, so she put it up for rent. In the past several years, she had all kinds of trouble with tenants and even had to have one evicted.

"It was a bit of a nightmare because I don't live in Greenville. ... I have no desire to go back to Greenville because my life is in D.C.," says Patel. "It was a lot of coordination, and I am still trying to collect over $2,000 from my tenants." Patel finally ended up selling the home recently at a large loss. She didn't want to do a short sale because the process is long and risky, and she didn't want to damage her credit.

While there are no real estimates of how many "accidental landlords" now inhabit the housing market, Realtors say they are one more cause of today's low inventory issue. Usually a buyer is also a seller, making the transaction a wash in terms of inventory, but if the buyer is not a seller, and instead becomes a landlord, inventory takes a negative hit.

Home prices have been rising steadily, up more than 10 percent from a year ago, according to the latest reading from CoreLogic. Prices are still well below where they were during the housing boom, when so many people bought into the market. As millions come above water, others are far below. Forty-eight percent of borrowers in Atlanta are underwater, 37 percent in Miami, 54 percent in Las Vegas and 37 percent in Sacramento. It will take many years of price gains for these homeowners to see the light of equity.

See more on CNBC:
CNBC Explains: Housing Starts
What's an Underwater Mortgage?
CNBC Explains: Jumbo Mortgages

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What Does It Take to Be a Landlord

 

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]]>accidental landlordslandlordsrenters+rulesrentingunderwaterunderwater homeownersCNBC2013-05-24T14:30:00+00:00Phoenix Home Wrecked in Hostage Standoff -- Who's Responsible?http://realestate.aol.com/blog/on/hostage-standoff-wrecks-phoenix-home/http://realestate.aol.com/blog/on/hostage-standoff-wrecks-phoenix-home/http://realestate.aol.com/blog/on/hostage-standoff-wrecks-phoenix-home/#commentsFiled under:

Phoenix home wrecked in hostage standoff

After seeing the ruined interior of a Phoenix home stormed by a SWAT team, some may ask: Did authorities go too far? A wanted man allegedly held five hostages at the house -- including the homeowners. To get inside, officers rammed an armored vehicle into the walls of the house several times. After the chaotic scene, the homeowners invited Phoenix station KNXV-TV inside, where it reported that the home is now unlivable. Along with crumbling walls, the destruction includes bullet holes, shattered glass and blood spatters.

The mess resulted from a police pursuit Monday night of 32-year-old Israel Celis Sr., who allegedly abducted his 3-year-old son and held him hostage along with the others in the home, KNXV reported. Another Phoenix station, KSAZ, said that Celis refused to surrender to officers, leaving them no choice but to use an armored truck on Tuesday morning to drive "nearly entirely into the house."

Bullet holes reportedly riddle the entire structure. And the two bedrooms where the vehicle entered the home are strewn with debris and were nearly obliterated, and it's on this side of the home where KNXV said that blood is found throughout. Celis took his own life in a bathroom there as police closed in and the hostages were freed.

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The homeowners were described as friends of Celis, and asked not to be identified or appear on camera as they told KNXV that they had filed a claim with their insurance agent but did not know whether the City of Phoenix would be involved in the process. They said they were "shaken and upset" about the whole situation and the amount of damage to their home. It was not clear when the home would be livable again.



See also:
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How To Protect Your Home From Damage in a 'Perfect Storm'
Ariel Castro's Cleveland Home Becomes a 'Tourist Destination'

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]]>crime scene real estatehome destructionHome insurancehostage rescuehostage situationisrael celis sr.unlivable conditionsAOL Real Estate Editors2013-05-24T14:25:00+00:005 Reasons Housing Will Continue to Improvehttp://realestate.aol.com/blog/2013/05/24/why-housing-market-will-improve/http://realestate.aol.com/blog/2013/05/24/why-housing-market-will-improve/http://realestate.aol.com/blog/2013/05/24/why-housing-market-will-improve/#commentsFiled under:

aerial view tract homesBy Brian O'Connell

Wall Street was abuzz over Home Depot on Monday as the stock climbed to a 52-week high on a strong earnings report stemming from a burgeoning housing market. "In the first quarter, we saw less favorable weather compared to last year, but we continue to see benefit from a recovering housing market that drove a stronger-than-expected start to the year for our business," said Frank Blake, chief executive at the home services retail giant. Blake and his company may be onto something.

More and more analysts are coming out with stronger, more bullish reports on the U.S. housing market, and that's great news for long-suffering homeowners, who finally see some traction in home values after five years of decline and decay in the housing sector. The latest to the post is Lawrence Yun, the National Association of Realtors' chief economist. At a recent residential real estate forum in Washington, D.C., Yun said that we are headed to a "multiyear housing recovery." In his talk, he listed several key reasons why:

Stronger employment leads to buyer interest. "Steady job creation and household formation have been helping to unleash a pent-up demand in the housing market," Yun says. "Lagging housing starts and a continuing housing shortage mean home prices are primed to rise further, by 13 percent cumulatively in 2013 and 2014, which will add more than $2 trillion to household wealth over this period."

Investment and vacation homes are in demand. Yun, who pegs U.S. existing home sales growth at 5 million this year, 5.3 million next year and 5.7 million in 2015, says investment in vacation homes is rising in interest among buyers. "Growth in household wealth will help vacation home purchases," he adds.

Home inventories are low. With demand rising, there aren't enough homes available. That is driving up existing home prices. "Double-digit price gains are within reach in 2013 because inventory is bouncing near 13-year lows, but some relief to inventory will occur later in the year," Yun says. He estimates the median U.S. home price will rise 8 percent this year and 5 percent next year.

Renters are getting into the picture. After years of sitting on the sidelines, U.S. renters are looking to shed their apartments and buy homes. The NAR says that 51 percent of renters are qualified for a home mortgage, up from 24 percent in 2005.

"Just looking at the financial qualifications, this means there are about 8 million more renters with the income necessary to buy a home now than in 2000, but they are choosing not to or are unable to become a homeowner," Yun says. He expects more renters to hit the housing market this busy summer buying season.

Credit scores are returning to normal. Yun says consumer credit score requirements are "dialing back," with the average credit score needed for a conventional mortgage at 720 (and 660 for a government-backed FHA loan). The average score needed for a home loan skyrocketed to 770 after 2009, Yun says.

With mortgage interest rates low -- down to 3.71 percent this week, as measured by BankingMyWay's weekly mortgage rate tracker -- all signs point to a strong summer homebuying season. That's a relief to homeowners, real estate agents and economists, who might well be thinking, "Who says 13 is an unlucky number?"

See more on TheStreet.com:
You Want to Pin Down Your Home's Break-Even Point
How to Win a Bidding War on the Home You Really Want
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New Home Sale Prices at Record High, and More

 

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]]>home inventoryhome priceshome+buyinghousing markethousing recoveryLawrence Yunmortgagesvacation homesTheStreet.com2013-05-24T12:00:00+00:00Kat Von D Lists Her Gothic Home in Los Angeles (House of the Day)http://realestate.aol.com/blog/2013/05/24/kat-von-d-los-angeles-home/http://realestate.aol.com/blog/2013/05/24/kat-von-d-los-angeles-home/http://realestate.aol.com/blog/2013/05/24/kat-von-d-los-angeles-home/#commentsFiled under: , ,

Kat Von D's Los Angeles home

By Cristin Zweig

Kat Von D, the most famous tatted up chick in America, is selling her gothic home in Los Angeles for $2.5 million. Kat Von D is known as much for her work as a tattoo artist and appearance on the reality show "LA Ink" as she is for her train wreck of a relationship with Sandra Bullock's philandering ex, Jesse James. He and Kat Von D dated, got engaged, broke up, got re-engaged and then finally ended things for good after she discovered he had cheated on her with multiple women. Shocked or surprised? Yeah, we aren't either.

Kat Von DAfter that relationship, Kat Von D got back into the dating game and is now engaged to uber-famous DJ and music producer Deadmau5. In case you missed it, he proposed to her on Twitter. The duo are set to wed Aug. 10 in an underwater-themed wedding. Not kidding.

With the nuptials just months away, Von D and her fiance are looking for a new home for their fresh start as husband and wife. Very much a reflection of her gothic style, Von D's for-sale abode is a gated and private artist's retreat with guest house and dark details. A 1920s Spanish-style home, the property has four bedrooms, 4.5 bathrooms and a chef's kitchen with Viking appliances and a dining room fit for a Medieval castle. Outside, an entertaining area includes a barbecue, fire pit and spa.

See the listing for more details.

Find more homes for sale in Los Angeles, or search listings in your area.

See more celebrity homes on Trulia's Luxe Living blog.

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]]>gothic designHouse of the DayKat Von DKat Von D homeLos AngelesLos Angeles real estateTrulia Luxe Living Blog2013-05-24T10:30:00+00:00Defuse the Situation Before Landlord-Tenant Disputes Get Uglyhttp://realestate.aol.com/blog/on/how-to-avoid-landlord-tenant-disputes/http://realestate.aol.com/blog/on/how-to-avoid-landlord-tenant-disputes/http://realestate.aol.com/blog/on/how-to-avoid-landlord-tenant-disputes/#commentsFiled under: ,

police cars at scene of landlord-tenant dispute in hialeah florida

Landlord-tenant disputes happen with some regularity, but they can usually be tamed quickly and amicably. A little communication goes a long way, just like in any kind of relationship. The last thing you want to do is let a disagreement spin out of control. If you don't try to diffuse the situation early on, things can get ugly.

That's what happened between one landlord and his tenant on Thursday in Hialeah, Fla. The landlord fatally shot his tenant in the chest during a heated argument, WSVN-TV in Fort Lauderdale quoted authorities as saying. The tenant, a man in his 20s, reportedly was wielding a baseball bat when he confronted the landlord at a home the tenant had been renting. Police have not disclosed the cause of the argument, but NBC Miami reported that the tenant had been evicted from the home the day before. The landlord, who has not been identified, is not being charged with a crime, and the incident is being considered self-defense, police said.

Now this is an extreme example, but landlord-tenant disputes never have to go this far. With some simple precautions, there are ways in which landlords and tenants can avoid disputes. But in the case a dispute still arises, there are ways to stop it from escalating.

Avoid Disputes Altogether by Knowing Where You Stand

According to the Rentalutions blog, the primary cause of disputes between landlords and tenants is a misunderstanding regarding the lease agreement. To avoid this, before entering into a contract, landlords and tenants should thoroughly read through the entire rental agreement together and ask questions to ensure that each party has an understanding of their relationship and responsibilities. According to Rentalutions, if there is mutual understanding before the lease is signed, then the chance of a dispute arising later is significantly diminished.

If There Are Problems, Take Pictures and Keep Documentation

The less ambiguity, the better. According to legal site Nolo.com, landlords and tenants should keep copies of any correspondence and make notes of conversations about any problems. In the case of repairs, for example, tenants should write a letter requesting repairs and keep copies of that letter. The landlord should also keep a copy of the request letter, and keep documentation, receipts and pictures of when the issue was repaired.

The more hard "evidence" there is between parties when it comes to real estate matters, the less chance there is for blaming and "he-said, she-said" arguments. Anything less than hard-copied communication, according to Inman News, opens up a chance for miscommunication.

If an Altercation Arises, Communicate -- or Get Help

Keeping the communication lines open is key, but if talking it out just won't work, then get the issue resolved by using a local landlord-tenant dispute resolution service. Many cities offer landlord and tenant dispute services in order to prevent the situation heading to court, eviction -- or worse.

See more on landlord-tenant disputes:
Tenants of Complex Irate Over Mid-Lease Rent Hikes
When You Can Force Your Landlord To Listen To You
Tenants' Rights in Eviction: When Do Landlords Go Too Far?

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]]>hialeah floridalandlord shoots tenantlandlord-tenant disputesrenters+rulesrentingAOL Real Estate Editors2013-05-23T16:12:00+00:00Lawsuit Forces NY State to Give Mentally Disabled Couple a Homehttp://realestate.aol.com/blog/2013/05/23/lawsuit-forces-ny-state-to-give-mentally-disabled-couple-a-home/http://realestate.aol.com/blog/2013/05/23/lawsuit-forces-ny-state-to-give-mentally-disabled-couple-a-home/http://realestate.aol.com/blog/2013/05/23/lawsuit-forces-ny-state-to-give-mentally-disabled-couple-a-home/#commentsFiled under:

Paul Forziano, Hava Samuels seated at their wedding

By Kevin Dolak

A newly married, mentally disabled couple's dream of living together -- up until now beset by legal troubles and care facilities that refused their wishes -- is about to come true. New York state is providing them with a home of their own. Paul Forziano, 30, and Hava Samuels, 36, (both pictured above) who both have mild to moderate mental disabilities, met seven years ago at a day program run by the Maryhaven Center of Hope, which is part of Catholic Health Services of Long Island. After they met, each immediately began telling their parents about their new friend. It wasn't long before they were calling each other "boyfriend" and "girlfriend."

On April 7, 2012, they married on Long Island's North Shore. The wedding initially was pushed back because the couple wanted to be able to live together once they were married. So before their big day, their parents began trying to figure a way for the two, who lived in separate group homes three miles apart, to establish a home together.

"They started dating and gradually got more and more serious about each other," Paul's mother, Roseann Forziano, told ABCNews.com. "Four years ago, they started talking about getting married. At the time, I didn't know if people with developmental disabilities could be married. So I started doing research."

Forziano said that she "naively" approached the Independent Group Home Living Program, which has housed her son since 2009, and asked if this could be facilitated. She told ABCNews.com that the state-sanctioned nonprofit that ran the home told her that the couple would not be allowed to share a living space within the IGHL program. Eventually, the families would file a lawsuit in January 2013, claiming that the IGHL, the Maryhaven Center for Hope, where Hava lived, and the state were violating the couple's rights under the Americans with Disabilities Act, the Fair Housing Act and the 14th Amendment.

According to that suit, IGHL's clinical director had concluded that Paul and Hava were not capable of cohabitation. The director stated that if a person "cannot wash, cook, iron, and take care of money for themselves, then that person cannot take care of another person," according to the complaint. Undeterred by this conclusion, Forziano and her husband decided to research the rights of their son and his wife-to-be. "We went to the law library and looked up regulations," she said. "They said that agencies cannot deny people's civil rights. The state has to regulate the agencies, and ensure that they uphold [Paul and Hava's] civil rights."

Forziano said that she and her future in-laws then had her son and his bride-to-be assessed by psychologists at the YAI Agency in Manhattan to determine whether they were emotionally and mentally mature enough for a sexual relationship. The couple attended relationship counseling, and based on this, a psychologist from the Cody Center for Autism and Developmental Disabilities at Stony Brook University concluded that the couple's desire to marry was appropriate.

Still, the families continued to hit roadblocks in trying to secure housing for the couple, with representatives from IGHL unresponsive to the couple's desires, according to the suit. Ultimately, Forziano and her husband, along with Hava's parents, decided that IGHL, Maryhaven and the state had failed to provide adequate assistance in finding Paul and Hava a home. That's when they decided to sue.

Norman Samuels, Hava's father, told ABCNews.com that he and his wife, Bonnie, were repeatedly told by Maryhaven that they didn't feel Hava was clinically capable of being in a marriage.

Read the rest of this story on ABC News.

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]]>Catholic Health Services of Long Islanddisability lawsuitHava SamuelsMaryhaven Center of HopePaul ForzianoABC News2013-05-23T15:00:00+00:00Homes Selling as Fast as They Did During Housing Boomhttp://realestate.aol.com/blog/2013/05/23/homes-selling-fast/http://realestate.aol.com/blog/2013/05/23/homes-selling-fast/http://realestate.aol.com/blog/2013/05/23/homes-selling-fast/#commentsFiled under: ,


By Diana Olick

Strong demand and still limited supply mean homes are now selling nearly three times as fast as they normally would. The average number of days a listing stayed on the market in April was 46, down from 62 in March and down from the normal pace of 90-120 days, according to the National Association of Realtors.

"I have a seller, his house came on, he got a full-price offer, and he refused to take it because he wanted multiples. Really?" asked Jane Fairweather, a real estate agent in Montgomery County Maryland, a suburb of Washington, D.C. Fairweather said homes in her market are selling in an average of 23 days because inventories are way down and demand is strong. The number of listings in Montgomery County were down 41 percent in April from 2011. In April of 2011, one third of the listings went under contract. In April of this year, 67 percent went under contract.

home sold sticker on for sale sign in front yard"I don't think it's a boom we have to worry about because this is all about low interest rates and low inventory," noted Fairweather. "This is not about easy money. The standards for borrowing are still very tight."

The sales pace is back to what it was during the housing boom in 2005 and 2006, but the circumstances are of course very different. Back then it was all about easy money, and now it's about stiff competition for limited supply. "We need to see home builders increase production," said Lawrence Yun, chief economist for the NAR, in a press conference. "We need a 50 percent increase in starts."

Home builders are actually slowing production, trying to take advantage of home price gains that are nearing double digits. High-end home builder Toll Brothers, based in Horsham, Pa., reported that it raised prices by $26,000 on average, or about 5 percent, during the second quarter. The average price of a contract signed in the quarter was up sixteen percent from a year ago.

While homes are certainly selling faster, double-digit price gains are not considered healthy, especially when wage growth is nowhere near that. At some point buyers will hit the wall, unable to afford the homes they want. First-time homebuyers are already dropping out of the market, representing just 29 percent of homebuyers in April, according to the NAR. That's the lowest in two years. Rising mortgage rates, now at their highest in two months, are playing a part, but there are also fewer low-end homes to buy. The number of homes in the foreclosure process is now down nearly 25 percent from a year ago, according to a new report from Lender Processing Services.

Just 18 percent of home sales in April were of distressed properties, the lowest since the Realtors began tracking this number in 2008. Compare that to 35 percent about a year and a half ago. Sales of homes priced below $100,000 were down 10 percent in April compared to a year ago, while every other price range saw sales gains. Those who can get credit are now competing for what little there is to buy, and pushing prices well beyond expectations. "I don't see it lasting," added Fairweather. "I think the minute they increase interest rates, you'll see people pull back."

See more on CNBC:
CNBC Explains: Housing Starts
What's an Underwater Mortgage?
CNBC Explains: Jumbo Mortgages

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]]>home priceshome saleshomes selling fastlow housing inventorymortgage ratesCNBC2013-05-23T13:00:00+00:00New Home Sales Up 2.3% in April as Median Price Hits Record Highhttp://realestate.aol.com/blog/2013/05/23/new-home-sales-record-prices/http://realestate.aol.com/blog/2013/05/23/new-home-sales-record-prices/http://realestate.aol.com/blog/2013/05/23/new-home-sales-record-prices/#commentsFiled under: , ,

New home sales up 2.3 percent in April; record high prices

WASHINGTON -- Sales of new homes rose in April to the second highest level since the summer of 2008 while the median price for a new home hit a record high, further signs that housing is recovering. New-home sales rose to a seasonally adjusted annual rate of 454,000 in April, the Commerce Department said Thursday. That was up 2.3 percent from March and just slightly below January's 458,000.

Both January and April had the fastest sales rates since July 2008. The median price of a home sold in April was $271,600, the highest level on government records going back to 1993. The April price was 8.3 percent higher than in March and 13.1 percent higher than a year ago.

Steady job creation and near-record-low mortgage rates are spurring more Americans to buy homes. With the April increase, sales are now 29 percent higher than a year ago, but sales are still below the 700,000 level considered healthy by economists.

The strength in April was led by a 10.8 percent rise in sales in the West. Sales in the South were up 3 percent but sales fell 16.7 percent in the Northeast and were down 4.8 percent in the Midwest. Sales of previously owned homes rose in April to a seasonally adjusted annual rate of 4.97 million, the highest level in 3½ years.

Greater demand, along with a tight supply of available homes for sale, is also boosting prices in most markets and encouraging more construction. Applications for permits to build homes rose in April to the highest level in nearly five years. While construction of new homes and apartments slipped a bit in April, the drop came one month after construction topped 1 million for the first time since June 2008.

Higher prices tend to make homeowners feel wealthier. That encourages consumers to spend more, which accounts for 70 percent of economic activity. Federal Reserve Chairman Ben Bernanke cited the revival in housing as a significant benefit of the Fed's super-low interest rate policies. "Higher prices of houses and other assets, in turn, have increased household wealth and consumer confidence, spurring consumer spending and contributing to gains in production and employment," Bernanke said in an appearance before the congressional Joint Economic Committee.

Several major homebuilders have reported strong annual increases in orders for the first three months of the year, Ryland Group Inc., said that its orders in April jumped 59 percent from a year earlier.

Though new homes represent only a fraction of the housing market, they have a sizable impact on the economy. Each home built creates an average of three jobs for a year and generates about $90,000 in tax revenue, according to data from the National Association of Home Builders.

Copyright 2013 The Associated Press. The information contained in the AP news report may not be published, broadcast, rewritten or otherwise distributed without the prior written authority of The Associated Press. Active hyperlinks have been inserted by AOL.

More news about home sales:
Homes Selling as Fast as They Did During Housing Boom
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First Time Buyer Recounts Home Buying Process

 

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]]>april home pricesapril home saleshome priceshome saleshousing markethousing market recoveryNew Home Salesreal estate marketThe Associated Press2013-05-23T11:45:00+00:00Ellen DeGeneres and Portia De Rossi's New Mansion (House of the Day)http://realestate.aol.com/blog/2013/05/23/ellen-degeneres-portia-derossi-home/http://realestate.aol.com/blog/2013/05/23/ellen-degeneres-portia-derossi-home/http://realestate.aol.com/blog/2013/05/23/ellen-degeneres-portia-derossi-home/#commentsFiled under: , ,

ellen degeneres portia derossi home in montecito
By Erika Riggs

Ellen DeGeneres is well-known for her sticky trigger finger when it comes to real estate. The comedian and daytime television host goes through properties the way others go through designer shoes -- listing or buying a new property nearly every year.

So it's no surprise to hear a report from TMZ that DeGeneres, along with wife Portia de Rossi, picked up a new property in Montecito, Calif., for $26.5 million -- a gorgeous, bluff-front estate called the Saladino Villa. (UPDATE: 10:26 a.m.by AOL Real Estate, The Huffington Post reports that the property, though listed as in Montecito, is shown on records as having a Santa Barbara address.) Although DeGeneres likes to pick up "projects," admitting to Elle Decor recently that she's always ready to move, this home looks pretty move-in ready.

"Indeed, there's nothing the television star and comedian loves more than designing a house," the article stated, and quoted Los Angeles designer Cliff Fong, who quipped: "Ellen has moved more times than any person I know."

Although the home boasts everything "streamlined and modern for easy living," expect an overhaul of the 1928 home from DeGeneres.

Designed by architect Wallace Frost, the home was redone by designer John Saladino around 2009. Offering six bedrooms, nine fireplaces and seven baths, the home sits on 13 acres with ocean views. The two-parcel property is, of course, incredibly private, with luscious landscaping and gracious indoor and outdoor living areas.

Now that DeGeneres and De Rossi have a new "project" on their hands, will they dump their enormous horse ranch? While it seems that DeGeneres wouldn't mind listing, it's De Rossi, an avid horseback rider, who likely wants to keep the property. But with a feature in Elle Decor, the home may end up on the market regardless. Besides, this new home in Montecito does have room for stables and barns.

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See More on Zillow:
Ellen and Portia Sell Malibu Home a Year After Buying
Drew Barrymore Lists in Montecito
Katy Perry Buys Mid-Century in Hollywood Hills

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Ryan Seacrest Buys Ellen DeGeneres's Home for $37M

 

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]]>celebrity homescelebrity real estateellen degeneresellen degeneres homehouse of the dayluxury real estatemontecito real estateportia de rossiZillow2013-05-23T06:00:00+00:00Why Real Estate Investors Have the Edge in Housing Markethttp://realestate.aol.com/blog/on/why-real-estate-investors-dominate-housing-market/http://realestate.aol.com/blog/on/why-real-estate-investors-dominate-housing-market/http://realestate.aol.com/blog/on/why-real-estate-investors-dominate-housing-market/#commentsFiled under: , ,




Prospective homebuyers are entering some markets today to find it rife with competition and the pickings slim. While many put off home purchases during the financial crisis, Wall Street investors dove right in and snapped up all the good buys while they were cheap. This was especially prevalent in areas where housing prices bottomed out during the recession. And now, with interest rates historically low and the economic recovery under way, average consumers want in -- but they're running into fierce competition over what's left to choose from.

Matthew Ong of Nerd Wallet on HuffPost LiveA recent discussion on HuffPost Live -- shown in the video above -- looked at why real estate investors make much more attractive buyers than others in the housing market. Said Matthew Ong, a retail analyst at Nerd Wallet: They bid in cash, in full and higher than the asking price. Investors also have the funds to give homes much-needed repairs. But instead of selling those properties they rent them out, altering the social fabric of the neighborhoods as people begin to move in and out more frequently.

"The problem here is that investors buy when something is cheap, whereas consumers buy when they're ready," Ong said.

But waiting for buyers to be ready is not how the market works, so average consumers might need to be prepared for a long, hard search.

See more news about homebuying:
More Young Couples Say 'I Do' to Buying a Home Before Marriage
Investors Betting on Housing Recovery Big Time
Where Castles Offer Big Bang for Your Buck

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]]>consumersfinancial crisishome buyinghousing marketinvestorsreal estate investorsrecessionwall streetwhy real estate investors dominate housing marketAol Real Estate Staff2013-05-22T14:16:00+00:00Your Perfect Apartment Might Not Be in Your Favorite Neighborhoodhttp://realestate.aol.com/blog/on/how-to-find-perfect-apartment/http://realestate.aol.com/blog/on/how-to-find-perfect-apartment/http://realestate.aol.com/blog/on/how-to-find-perfect-apartment/#commentsFiled under: , ,

Anyone who has been apartment hunting lately knows that just as the prices have changed, so have the rules. And in the country's most competitive markets, the process can be a blood sport. No matter where you want to hang your hat, experts advise being realistic about expectations and budget. There's nothing worse than falling in love with a neighborhood you can't afford.

When budget is an issue, experts suggest looking for an area with the same attributes as your dream 'hood, but at a lower cost. If you've fallen in love with the leafy but pricey streets of brownstone Brooklyn, for instance, you may find your money stretching farther in Jersey City, a lower-profile neighborhood with a similar vibe -- and, depending on where you land, killer views of Manhattan.

"I recommend people be open to areas other than Manhattan and to other parts of Brooklyn that are commuter-friendly," says Eric Benaim, founder of Modern Spaces, a Long Island City-based real estate firm.

Louise JordanFor Louise Jordan (pictured at left), 35, an account director with a public relations firm, that meant looking outside New York City. She had lived in the city for 11 years before moving to Sweden with her now-fiance for 16 months. When they returned to New York, they settled in the Brooklyn neighborhood of Greenpoint but soon found themselves wanting to replicate their quieter, greener situation in Gothenburg.

"Once I got back to New York, I was overwhelmed by how crowded and dirty it was [compared to Sweden]," she said. "I wanted to continue working in Manhattan but have my outdoor space." After looking around, they settled on the town of Irvington, just north of the city. There, they spread out in two bedrooms and two bathrooms, in a complex surrounded by nature and bike trails -- a luxury they couldn't afford in their former, hip Brooklyn neighborhood.

Considering an alternate neighborhood may also ease some of the stress of competition. Jordan recalled feeling pressured to take an apartment in Manhattan's East Village because her broker assured her that the place would be gone within minutes. In super-hot neighborhoods, it's not uncommon to come to a showing with a checkbook in hand, a credit report and references.

"If you come unprepared, they're not interested in you," Jordan said. "You have to prove yourself, because [landlords] can pick anyone." Benaim suggested that smaller landlords in lesser markets may be more lenient.

That was the case for Tina Awad, 52, who, after living in downtown Manhattan for 13 years, moved nearly 100 blocks north. A massage therapist who has her own business, Awad was in search of a rental where she could devote one room to patient care. Priced out of downtown, where most of her clientele lived, she sought an alternate neighborhood with good transportation. Her other challenge: Because she runs her own business, she lacked many of the employment documents that most landlords required for a background check.

But by seeking an independent landlord, she found one who reviewed her tax returns, found her income adequate and rented her a two-bedroom apartment on West 104th Street. "I think an owner-operated kind of building is more flexible, as opposed to the kind that has a doorman and all the brouhaha," she said.

See more about renting:
Rental Perks You Might Get -- If You Ask
When You Can Force Your Landlord To Listen To You
Most Renters Have Pet

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How to Negotiate an Apartment Lease

 

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]]>apartment hunting tipshow to find a perfect apartmentrenters+rulesrentingLana Bortolot2013-05-22T13:40:00+00:008 Key Facts About Your Mortgage APRhttp://realestate.aol.com/blog/2013/05/22/mortgage-apr-facts/http://realestate.aol.com/blog/2013/05/22/mortgage-apr-facts/http://realestate.aol.com/blog/2013/05/22/mortgage-apr-facts/#commentsFiled under: , ,

mortgage document, pen and house keys

By Scott Sheldon

Securing a mortgage today requires careful consideration of all the figures associated with the transaction. The biggest figures that most homebuyers pay attention to include loan amount, interest rate, closing costs and the one most benign to consumers, the annual percentage rate (APR for short), which is a disclosure item required in loan advertisements and loan disclosures.

Set forth by TILA (Truth In Lending Act) and overseen by the Fed, APR is touted as the most accurate barometer to compare one mortgage offer to another. In comparing mortgages, there is often inaccurate distinctions made with regard to disclosures between APR and interest rate, and what consumers are actually borrowing that creates confusion around the numbers. Here are some terms you need to understand to cut through the confusion.

Annual Percentage Rate, or APR: A function of blending the closing costs associated with the loan transaction and re-amortizing that figure over the term of the loan.

Interest Rate: The actual interest rate tied to the amount of money being borrowed. Also called a "note rate," it is what determines the amount of interest you'll pay over the life of the loan on an amortization schedule.

The Facts About Mortgage Annual Percentage Rate

o. The annual percentage rate does not determine the monthly mortgage payment. The note rate is what determines the monthly mortgage payment.

o. Lenders must disclose the annual percentage rate on their loan disclosures after you submit a mortgage application.

o. The APR is usually within a 0.125 percent range above the note rate. This is positive because it indicates your closing costs are very small in relationship to the amount being borrowed and the interest rate (note rate) you are receiving.

o. If the APR is substantially over the 0.125 range above the note rate, this is an indicator of higher fees (closing costs) associated with the amount borrowed.

o. The APR is higher than the note rate because the APR takes into consideration a "blending" of the interest rate and closing costs over the life of the loan.

o. APR is not paid over the term of the loan -- for example, 360 months representing a 30-year fixed rate mortgage. The note rate is the interest rate paid over the term of the loan.

o. The APR is a measuring tool used upfront to compare mortgage offers only, usually during the initial application process in comparing different loans.

o. APR represents the total cost picture in securing a mortgage, not the total interest paid over the life of the loan.

While APR is the standard used to compare mortgages, it is not the only way to compare mortgages. Rather than trying to figure out the intricacies of APR, consumers could also be served by comparing the following items to determine what mortgage choice is ideal.

These include:
o. Loan term.
o. Interest rate.
o. Closing costs.
o. One loan term versus another.
o. Closing costs recapture (determined by taking amount of closing costs divided by payment savings).

One last takeaway: The mortgage with the financing terms most consistent with your long-term goals and objectives is the ideal direction to take.

See more on Credit.com:
The First Thing to Do Before Buying a Home
Why You Shouldn't Obsess Over Mortgage Rates
3 Things That Can Stop a Mortgage in Its Tracks

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]]>annual percentage rateAPRhome+buyinghomebuyersinterest ratesmortgagemortgage aprmortgage tipsmortgagesCredit.com2013-05-22T13:00:00+00:00China's Real Estate Market: A Bubble About To Burst?http://realestate.aol.com/blog/on/china-real-estate-bubble/http://realestate.aol.com/blog/on/china-real-estate-bubble/http://realestate.aol.com/blog/on/china-real-estate-bubble/#commentsFiled under: , ,




China's housing bubble may be ready to pop if the government doesn't take measures to prevent it, some economists are saying. The impact on China's economy could be devastating and permanent, much like Japan's crash of the 1980s, analysts speaking to CNNMoney warn. Home prices have spiked as much as 8 percent or more in some parts of the country over the past year. The National Bureau of Statistics found that of 70 major Chinese cities, 67 saw a rise in prices in April.

Chinese skyscrapers shown on 60 MinutesAs seen in the Newsy video above, CNNMoney reports that a 2,000-square-foot, three-bedroom home fetches as much as $2.27 million in Shanghai, as property values have soared there and in other tier-one cities such as Beijing and Guangzhou in the past decade. The trouble is that China measures GDP by what is built, unlike the U.S., which measures growth by what's bought and sold. This has put pressure on the state to build as much as it can and has resulted in what have been dubbed "ghost cities" -- multiple-block stretches of vacant skyscrapers. That's a clear warning sign for a country that builds an average of 12 to 24 new cities a year, a financial analyst in Hong Kong, Gillem Tulloch, told "60 Minutes."

One idea is for the government to introduce an annual property tax based on a home's market value. "That would reduce speculation, discourage owners from holding empty flats and provide a fresh source of funding for cash-strapped local governments," The Economist suggested (via Business Insider).

The Chinese government has stated that it will implement a plan to curb the spike in prices in Shanghai and Guangzhou, but hasn't said when.

See more on Chinese Real Estate:
China's Empty Cities: These Satellite Images Will Shock You
Guangzhou, China, Sinkhole Swallows Buildings (VIDEO)
Tricycle House in China Gives New Meaning to Mobile Home

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]]>chinaChina real estatechinese economychinese real estate bubblehousing bubbleAOL Real Estate Editors2013-05-22T12:15:00+00:00Drew Barrymore Lists Montecito Home for $7.5 Million (House of the Day)http://realestate.aol.com/blog/2013/05/22/drew-barrymore-santa-barbara-home/http://realestate.aol.com/blog/2013/05/22/drew-barrymore-santa-barbara-home/http://realestate.aol.com/blog/2013/05/22/drew-barrymore-santa-barbara-home/#commentsFiled under: ,

Drew Barrymore home in Santa Barbara
By Erika Riggs

Although she walked down the aisle in the backyard, Drew Barrymore's home near Santa Barbara doesn't seem to have too much of a hold on her. The actress has listed the Montecito, Calif., home for $7.5 million just a year after getting married, according to property records and The Real Estalker blog.

Barrymore reportedly bought the home in June 2010 for $5.705 million. The estate is out of the way from the buzz of Hollywood on a secluded 2 acres -- ideal for a quiet, paparazzi-free wedding and starting her family with new husband Will Kopelman.

With a spacious 6,000-square-foot floor plan and six bedrooms, an upgrade in size isn't needed. However with Kopelman from New York, the couple could be considering a move back east. Barrymore also owns another home in Southern California that she bought in 2002.

The "Never Been Kissed" actress' two-story classic was built in 1937 with a long, gravel driveway and a separate guesthouse. Inside, the home is markedly traditional, although Barrymore's quirky nature is apparent in the kitchen, where a sunny yellow table serves as the island and the two fridges are vintage -- one in a bright aqua shade. The grounds feature a long stretch of lawn, as well as a grove of citrus and avocado trees.

The home is listed by Suzanne Perkins of Sotheby's International Realty.

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Inside Drew Barrymore's Intimate Wedding

 

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]]>celebrity homescelebrity homes for salecelebrity real estatedrew barrymoredrew barrymore homeHouse of the Dayluxury real estatesanta barbarasanta barbara real estateZillow2013-05-22T06:00:00+00:00Olivia Newton-John Lists Florida Home for $6.2 Millionhttp://realestate.aol.com/blog/2013/05/21/olivia-newton-john-florida-home/http://realestate.aol.com/blog/2013/05/21/olivia-newton-john-florida-home/http://realestate.aol.com/blog/2013/05/21/olivia-newton-john-florida-home/#commentsFiled under: ,

Olivia Newton John home

By Catherine Sherman

What do you get when you combine a four-time Grammy winner and the founder of Florida's Amazon Herb Company? Cypress tongue-and-groove vaulted ceilings, natural coral stone flooring, custom driftwood cabinetry, bean bag seating and a rainwater harvesting irrigation system.

Olivia Newton-John married John Easterling in 2008 and moved into the $4.1 million plantation-style pad a year later. Now the Florida couple is selling the place for $6.2 million, The Real Estalker reports.

Located in the affluent Jupiter Inlet Colony, the 5,500-square-foot home received several eco-luxury renovations totaling $2 million in 2010. The windows can now withstand hurricane impact, the kitchen is equipped with Sub-Zero stainless steal appliances, and the media room is decked out with a state-of-the-art sound, video, shade and lighting system.

And for those more interested in simple pleasures, a vine-draped lanai, lagoon pool and spa, beach access and dock are steps away. The third-of-an-acre property is situated on the Jupiter Sound Intracoastal Waterway in Palm Beach County, ideal for snorkeling, boating or kayaking.

The "Grease" star decided to remarry at age 60, and her singing career spanning more than four decades is still going strong. This year, the native of England embarked on a tour of the United Kingdom. As a breast cancer survivor, she's also committed to educating and promoting women's health.

We'll see whether Newton-John and Easterling remain Florida beach-bound. Jo Ann Jacobson of Seawind Realty, LLC is the listing agent for the property.

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See more on Zillow:
Stevie Nicks' Old Hollywood Home Asks $1.6 Million
Country Legend George Jones' $8 Million Estate
Ray Lewis Lists Florida Beach Property, Gets Ready for ESPN

Olivia Newton-John Tours UK For First Time in 35 Years


 

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]]>florida real estatejohn easterlingOlivia Newton-Johnolivia newton-john houseZillow2013-05-21T16:30:00+00:00Vacation Home Sales Sizzle, Rentals Booking Fasthttp://realestate.aol.com/blog/2013/05/21/vacation-home-sales-rentals/http://realestate.aol.com/blog/2013/05/21/vacation-home-sales-rentals/http://realestate.aol.com/blog/2013/05/21/vacation-home-sales-rentals/#commentsFiled under: , ,

By Diana Olick

In the kitschy community of St. Michaels on the Maryland shore, businesses are gearing up for the official start of the season, Memorial Day weekend. Trucks carrying dozens of bicycles are unloading into waterside racks and shopkeepers are moving their bright-colored wares out onto the sidewalks. For real estate rental agents, however, the hard work is largely done. The biggest houses already are booked.

"Those houses do tend to book up in January," said Deborah Lipscomb, owner of Eastern Shore Vacation Rentals. "Because of the Jersey Shore and the things going on there, we are seeing more of a demand for this area."

The recession hit homebuying in this area, which actually increased competition in the rental market, but that may be about to change. Low mortgage rates, returning consumer and investor confidence, and the new migration from New Jersey are all combining to turn this Maryland market around. "We're getting the calls again from people looking to really buy -- buy into the market and start renting again," said Lipscomb.

The impact of Hurricane Sandy is less apparent farther south on Hilton Head Island in South Carolina. "It's a great time to buy, it's a bad time to sell, is what I tell people," said James Wedgeworth, who has been selling real estate on the island for over a decade. "There is a light at the end of the tunnel. "The rental market on Hilton Head, which largely caters to the golfing set, has remained strong throughout the recession, likely because so few people wanted to buy. Confidence is slowly returning here, but prices are not.

"It hasn't really started going up, but at least it's not going down. We had seven straight years of prices going down. That's no fun," added Wedgeworth.

Vacation home sales rose 10 percent nationally in 2012, according to the National Association of Realtors, but as with all things real estate, location is key. Prices are just stabilizing in South Carolina, but in the tiny towns of eastern Long Island, N.Y., better known as the Hamptons, home prices are roaring back and rentals are fully booked for the season.

"We've seen bidding wars in the four-to-five-million-dollar range as well as in the overall market," said Laura Nigro, a real estate broker in Bridgehampton. "It's so much better than when the 2008, 2009 economy shrank and people were very much afraid to invest in anything." Nigro pointed to the potential of rising mortgage rates as the key driver. She said the Hamptons are not seeing too many migrants from the Jersey Shore. The newest clients are coming from much farther away: China.

"In the Hamptons, there is a new influx of Chinese buyers. In the past, they haven't been prevalent in this Hampton marketplace, but this season, for whatever reason there is, they are out looking for properties," she said. Neither the Chinese nor the locals seem particularly concerned about more storms coming to the coast. Potential buyers are, however, looking more closely at FEMA flood requirements and coastal erosion zones, according to agents, but they are still ready to buy.

On Hilton Head, James Wedgeworth said clients are asking more questions about storms, but he has the perfect answer: "If you look at a NOAA map of all named hurricanes since 1950, the safest place, believe it or not, is Jacksonville, Fla., to Hilton Head. For whatever reason, they always hit up north."

See more on CNBC:
Fannie Mae in the Black: Now What?
America On the Move
Apartment Growth to Boom

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How to Decide If You Should Purchase a Vacation Home


 

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]]>buying a homebuying a vacation homehome+buyingvacation homesvacation rentalsCNBC2013-05-21T15:00:00+00:00Airbnb Ruled Illegal in New York Cityhttp://realestate.aol.com/blog/on/airbnb-ruled-illegal-in-new-york-city/http://realestate.aol.com/blog/on/airbnb-ruled-illegal-in-new-york-city/http://realestate.aol.com/blog/on/airbnb-ruled-illegal-in-new-york-city/#commentsFiled under: ,

Airbnb home page

New York City has effectively deemed the vacation rental website Airbnb illegal with a finding that a man there broke the law by renting out his apartment through the service. A judge arbitrating the case for the city's Environmental Control Board declared that using Airbnb violated New York's illegal hotel law, reported The Verge news site. That law prevents citizens from renting out their properties for less than 29 days -- a law established to stop landlords from turning residences into hotels.

According to CNET, the administrative law judge's May 10 decision -- fining New Yorker Nigel Warren $2,400 for violation of the hotel law -- doesn't necessarily mean that citizens with active Airbnb listings should close shop: The law is only actionable as a secondary offense. In other words, the city will only enforce the rule if a complaint is filed. Warren had faced a $7,000 fine for violating building and zoning codes in addition to hosting guests in his condo via Airbnb, and CNET added that it's not clear why Warren was investigated, but he did have a housemate at the time of the renter's stay.

Airbnb told CNET in a statement that it was not happy with the city's decision saying that the illegal hotel law shouldn't be applied to "occasional hosts" like Warren, who are not trying to run illegal hotels in their homes but are simply "trying to make ends meet." In fact, Airbnb argued that the online service "supports the city's desire to preserve living accommodations because it allows tenant the ability to bolster their income and pay rent."

Currently, there are over 1,000 listings available in New York City through Airbnb, Business Insider reports. Airbnb said it will continue the fight to ensure that New Yorkers are able to occasionally rent out their homes.

See more about rental rules:
Tenants of Manhattan Complex Irate Over Mid-Lease Rent Hikes
When You Can Force Your Landlord To Listen To You
Tenants' Rights in Eviction: When Do Landlords Go Too Far?

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Facebook's Mike Curtis Joins Airbnb

 

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]]>airbnbAirbnb illegal in New Yorkhome sharingillegal apartment rentalsillegal hotel lawnigel warrenrenters+rulesvacation rentalsAOL Real Estate Editors2013-05-21T14:17:00+00:00Bomb Shelter Boom Has Luxurious Living Coveredhttp://realestate.aol.com/blog/2013/05/21/luxury-bomb-shelters/http://realestate.aol.com/blog/2013/05/21/luxury-bomb-shelters/http://realestate.aol.com/blog/2013/05/21/luxury-bomb-shelters/#commentsFiled under: ,


By Colleen Curry




The latest real estate boom to sweep America comes with all the trappings of luxurious living: custom-built swimming pools, gyms, full-length basketball courts, and even airplane hangars. The only catch is that this time, the features are all buried underground. The boom in bomb shelter sales over the past 15 years has taken the spartan 1950s notion of a fallout shelter and given it a makeover, according to the owners of three companies that make and sell shelters. Now, custom installations can create 100,000-square-foot underground dwellings that could hold dozens of people for months or years.

"You can have all your major amenities: TV, high power and high voltage [appliances] ... horticulture rooms where you can grow vegetables and gardens, a full shower, all the amenities of your full home. We're not limiting what people can do," said Brad Roberson, marketing director for Rising S Company, which builds and installs custom shelters.

The basic requirements that most owners want in a shelter include air filtration systems to protect from nuclear, chemical and biological warfare, ventilation systems and a toilet system, as well as blast-proof and fallout-proof casing on the outside, he and other makers told ABC News. But in addition to that, shelters can have "secret doors, hidden passageways, panic rooms, bulletproof glass," running water, toilets, showers and electricity, according to Roberson.

Related: How Survival Real Estate is Surviving (and Thriving) After the Apocalypse

"Budget and imagination are the only limits," he said. A bunker on the small side of 10 feet by 20 feet starts at about $54,000. They go up from there to $10 million, Roberson said. At Utah Shelter Systems, corrugated pipe shelters start at about $50,000 for an 8-foot diameter by 32-foot length shelter. They go up to about $490,000 for a 12-foot by 50-foot run, Packer said.

Rising S recently built an $8 million shelter in Colorado that measured 15,000 square feet, with camouflaged elevators and handicap ramps to provide access to a disabled client. They placed a log cabin over the top of the bunker to serve as a safe house. Behind the logs will be a bulletproof half-inch steel plate protecting the structure, he said.

"Everything above ground is camouflaged by an old barn or water silo that sits above it," Roberson said. "He's got a basketball court, and airplane hangar large enough to park 2 Cessna planes that will open up to face a hill or mountain. He's got a large gym, 22 rooms, he has a large family."

Bomb Shelters Make a Comeback Amid Nuclear, Economic Uncertainties

In the past 15 years, companies that make and sell underground bunkers have sprouted up around the country, mainly in the West and South, according to the founders of three companies. "I think probably around the year 2000 we started seeing quite an increase in sales," said Sharon Packer, co-owner of Utah Shelter Systems in Draper, Utah. Her company installs shelters made out of 10-foot-wide concrete pipes linked together to create rooms six feet underground.

"People were concerned about the very real issue of possible effects on our computers. 'Y2K' started the upsurge, and for 13 years it's been a good steady business," Packer said. "After 9/11 we had a big surge in the East, in New York."

Related: Luxury 'Doomsday Bunkers' Promise Survival and Pampering

Recently, fears of a nuclear armed Iran or North Korea have stoked the fear that a nationwide disaster would force residents to retreat to safety underground to wait out nuclear fallout or social instability, Packer and others said.

"It's sad to say, the worse the state of affairs get, our government gets, the closer we see these policies the government is forcing down our throats, and foreign threats as well. It inflames peoples' desire to give themselves a retreat," Roberson said.

Read the rest of this story on ABC News.

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]]>bomb sheltersluxury bomb sheltersluxury real estatesurvival real estateunderground homesABC News2013-05-21T10:00:00+00:00Tornado Season: Do You Have Good Home Insurance?http://realestate.aol.com/blog/on/oklahoma-city-tornado-home-insurance/http://realestate.aol.com/blog/on/oklahoma-city-tornado-home-insurance/http://realestate.aol.com/blog/on/oklahoma-city-tornado-home-insurance/#commentsFiled under:



As the massive tornado that ripped through the Oklahoma City suburb of Moore has shown, we're in the midst of tornado season. Dozens are dead after Monday's storm, and the death toll is expected to rise as rescue crews continue searching through the rubble for survivors, The Associated Press reported. In the town of Moore, Okla., an elementary school was demolished and scores of homes were flattened.

For those living in the swath of the Great Plains, Midwest and South known as "tornado alley" -- which covers a big part of Oklahoma -- this is a reminder of how devastating the storms there can be. And it also shows that, as homes can be completely destroyed in a heartbeat by powerful twisters, you need home insurance. At this time of year, home insurance is doubly important considering the huge tornado outbreaks that tend to occur in the spring. But what does home insurance cover? Here's our guide:

What's Covered in Home Insurance, Section I

Coverage A covers the house itself -- roof, walls, cabinets, plumbing and electrical systems, HVAC (heating, ventilation and cooling system), etc. Most policies provide replacement cost coverage for the structure, provided that the property owner purchases sufficient insurance to cover 80 percent of the replacement cost. Failure to "insure to value" can result in a co-insurance penalty, that is, the insurance company pays only a percentage of the claim.

Coverage applies for "all risks." In other words, the coverage applies to a loss by any cause, except for those that are specifically excluded. Examples of excluded losses are earth movement (earthquake) and flood. Examples of covered losses include fire, theft and water that escapes from within an appliance. A windstorm is typically a covered peril, but there are areas of Florida in which private insurance companies will exclude them from policies. In these areas, property owners may purchase such an "x-wind" policy, and then purchase a separate windstorm-only policy from Citizens Property and Casualty. Citizens is the state-run insurer of last resort.

Coverage B covers "other structures" on the insured location that are separated from the primary structure by a clear space. This can include sheds, detached garages and the like.

Coverage C covers personal property. Under the base HO-3 policy, personal property is covered for "named perils." These are specified in the policy and include fire and lightning, theft, water that escapes from within a plumbing system or appliance, windstorm (again, the x-wind discussion above applies), rain (if wind damages the structure so that rain can enter), damage from vehicles or flying objects, etc. For an additional premium, many policies will provide "all risk" coverage, as for the structure.

Coverage D covers additional living expenses that are necessitated when a covered peril causes the structure to be unlivable.

What's Covered in Home Insurance, Section II

Section E covers liability. This is typically for property damage or personal injuries to third parties, due to the neglect of the insured. Examples would be injuries to a guest who slips and falls in the insured's home due to a hazard of which the insured person was aware and failed to correct. If the friend sues, the policy will provide a defense, but in most cases, the insurance company will attempt to negotiate a reasonable settlement based on the severity of the injuries and the degree of the insured's negligence.

Available coverage amounts vary, and the insurance agent should be able to recommend a level of coverage suitable for the individual's needs. Obviously, people with significant assets should carry higher limits of coverage. Consumers should be aware of the increasing use of exclusions. Specifically, insurance companies are excluding claims for animal liability (dog bites and the like), trampolines and swimming pool injuries, to name a few. Agents can explain the differences between policies and should always advise clients on the coverage that they require.

Section F provides medical payment coverages, which pay for medical bills incurred by persons injured on the insured property. The important distinction is that this coverage applies, regardless of the existence of negligence. Coverage amounts vary and can be increased by payment of an additional premium.

Finally, consumers like the Joneses should be 100 percent truthful with their agent when they're applying for coverage. If the applicant provides a false response to an underwriting question and the insurance company issues the policy, the insurance company may have the right to later deny a claim. The Joneses learned the hard way, finally coming to their senses and opting for another insurance company once they were dropped, but by then, the damage had been done and lots of money was lost. This list at the outset could have saved them a few headaches.

Differences Between Home insurance and Fire Insurance

Dwelling fire policies are less expensive, but coverages are more limited. The more-comprehensive dwelling form is the DP-3. Dwelling fire policies are most often used by landlords for rental properties, but they're sometimes purchased by owners who occupy the property.

The Form HO-3 is the most common type of homeowner's policy. It's generally the most comprehensive coverage and therefore the most expensive. The HO-3 policy is divided into two sections: Section I covers property, and Section II covers liability. Policies are typically divided into sections which identify what's covered, what it's covered against, what's not covered, and general terms and conditions.

See also:
Should You Buy a Standby Generator for Your Home?
How To Protect Your Home From Damage in a 'Perfect Storm'
Homeowners Insurance 101: What You Need to Know

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