A 38-year real estate veteran, Steve Brown has seen every angle of this business, from the sales associate’s perspective to the broker/owner’s. Now, he’s ready for his biggest role yet. The co-owner of Dayton, Ohio’s Irongate Inc., REALTORS®, a full service real estate firm with six offices and 300 agents, Brown gears up for the year ahead as the 2014 National Association of REALTORS®’ President. “I’m ready to do what it takes,” says Brown. “I’m ready to go.” In this exclusive interview, find out what his long-term goals for the industry are and what’s tops on his agenda.

Maria Patterson: Let’s start at the beginning. When and why did you first choose to become involved in the real estate industry at the association level?
Steve Brown: I became involved initially with the Dayton Area Board of REALTORS® and it didn’t take long for me to see that the decisions made by the Board affected how I did business. Their policies and decisions directly affected my own pocketbook. So I wanted to be a part of that decision-making process.

MP: Why is it important for REALTORS® and brokers to play a role in their local, state and/or national associations?
SB: If you’re taking your business seriously, you have to realize that being a part of a REALTOR® association is part of investing in your business. I don’t just mean financially. I’m talking about investing time and talent into an organization that does what you can’t do on your own—like reaching out to Congress on legislative and regulatory issues that protect the accessibility, viability, sustainability and affordability of property ownership. And if you don’t think dealing with those issues is an investment in your own business, well, you won’t be in business for long.

A:  Because adjustable rate mortgages, or ARMs, fluctuate with the market, they offer less stability than fixed-rate loans.  If an ARM is adjusted upward, monthly payments will increase, and for a lot of people that can be too big a risk to take.  On the other hand, should rates drop dramatically, homeowners can reap the benefits of lower rates without refinancing, thereby saving thousands of dollars.

Lenders first introduced ARMs in the 1980s when interest rates soared into the double digits, forcing many people out of the home buying market.  They tied the rate to a variable national index, such as U.S. Treasury bills.

Today, many first-time buyers who have difficulty qualifying for a home loan, still settle for adjustable rate loans because the initial, “teaser” interest rate of the mortgage is normally two or three points lower than a fixed rate loan.  ARMs are particularly attractive if you plan to be in your home a short time.  They tend to adjust yearly or every three years, usually within certain limits, or caps, that prohibit the interest rate from shooting up too high.  Make sure terms such as these are spelled out in any ARM agreement you choose.

The National Association of Home Builders (NAHB) called on Congress recently to take steps to resolve unintended consequences of the Biggert-Waters Flood Insurance Act that are resulting in huge premium spikes for many home owners and impacting the sale, construction and remodeling of homes across the nation.

Testifying before the House Financial Services Subcommittee on Insurance and Housing, Barry Rutenberg, immediate past chairman of NAHB and a home builder from Gainesville, Fla., said a key concern of the law is that it requires properties that had subsidized rates under the National Flood Insurance Program (NFIP) to immediately move to the full actuarial risk rate when they are sold or transferred.

“Prospective home buyers fear the higher rates will make their mortgages unaffordable, especially in today’s already tight credit conditions,” said Rutenberg. “We have heard of cases throughout the country where pending sales were canceled at the last minute because of this sharp rate increase.”

Remodeling the kitchen. When you decide to tackle this daunting undertaking, you want to do it right. And, you're not alone. Forty-nine percent of homeowners plan to completely gut their existing kitchen and start with a clean state, according to a recent survey by Houzz.com. Regardless of the scope of your project, if you're itchin' to update your kitchen, follow these five steps to design the space you've been dreaming about.

Step 1: Create a budget

Before picking up a single tool or seeking contractor recommendations from friends, it's important to determine how much you're willing to spend to achieve your ideal kitchen. Whether needing basic upgrades or a complete remodel, setting your budget will help to create a realistic plan from the start. There are a wide range of impactful updates to change the look of your space no matter what the price tag.

Step 2: Think about what you need (and what you want)

Take a step back and think about how you use the kitchen. Are you an avid baker who needs more counter space for rolling out confections? Do you like to make homemade pizza and the thought of a stone oven makes you drool? No matter what your dream space looks like, there's one area that everyone should update - the kitchen faucet.

Because it sees so much use on a daily basis, think about ways to make tasks easier, like installing a new pulldown faucet. From preparing meals and washing dishes, to watering plants and filling pitchers, you'll quickly notice the difference made by this simple update.

Thomson Reuters and the National Association of Counties (NACo) recently released the results of their Annual Local Property Markets Survey.

The survey results indicate a strengthening recovery for local property markets. Key findings include:
• 72 percent of U.S. counties surveyed reported an increase in assessed property values.
• 64 percent of counties reported an increase in the volume of records processed in the last year, a good indicator of the overall economic activity for local property markets.
• 29 percent of counties reported an increase in foreclosures, versus 23 percent reporting a decrease.

The survey also examined staffing levels for county tax, assessor, and recording offices — 13 percent reported staff reductions compared with 45 percent in 2012. Seven percent reported increasing staff.

Counties reported that information management systems are expected to increase staff and operational efficiency, improve data accuracy, and enhance the reliability and security of information. County governments identified mobile, cloud-based, and online services as leading technologies that they are now evaluating.

Consumers have more options than ever before when choosing materials for their home's exterior. Siding has evolved from a lower-quality choice to a stylish solution for homeowners looking to update their home's exterior on a budget thanks to relatively inexpensive material and labor costs paired with an abundance of new color and style options. Bold color choices, mixed materials and the addition of premium trim for a more custom look top the list of consumer siding trends heading into the New Year. Power Home Remodeling Group encourages homeowners to overcome the stigma once attached to vinyl siding and rediscover the endless possibilities of this stronger, more versatile material.

"The popularity of websites like Pinterest and Houzz has inspired homeowners to take risks when designing their home's exterior. Siding can turn an outdated facade into a stunner without breaking the bank. Siding replacement has a solid return on investment as well, allowing homeowners to recoup more than 70 percent of replacement costs at resale," said Ann Sawyer, Power Home Remodeling Group's vice president of Operations.

Vinyl siding can now perfectly mimic expensive architectural accents like wood, stone and slate, making these high-end looks available to budget-conscious consumers. Additionally, many homeowners are experiencing a renewed interest in vinyl siding thanks to advancements in technology that have created a more durable material designed to handle exposure to the elements for the long haul. Modern moisture barriers and foam insulation increase the energy efficiency and weather resistance properties of vinyl siding, and many providers even treat siding to guard against pests — making it a truly low maintenance option.

With renewed consumer interest in siding, Power offers the following trends, tips and best practices to consider when embarking on a vinyl siding replacement project:

• Don't be afraid of bold colors: Siding was once limited to eight to 10 color options, but there's now more than 20 colors to choose from. Darker, bolder colors such as deep green and barn red are trending nationally, and exterior color palettes are expanding to include three or more colors as contemporary home designs are more detailed and complex.

A national survey finds that a majority of homebuyers want to include brand-new homes in their search. At the same time, a small percentage of real estate professionals have the training, market knowledge and builder relationships to professionally support their clients in the new-homes arena. As a result, the majority of brokers and agents are professionally meeting the needs of only 46 percent of today’s homebuyers! Are you overlooking one of the most powerful keys to maximizing real estate success?

Can you imagine Lowe’s or Home Depot advertising this message: “We’re here with everything you need to meet 46 percent of your home improvement needs.” They might even add, “For the other 56 percent of your home improvement needs, you’re on your own. Good luck.”

It’s not only hard to imagine, but this would be a business model clearly destined for failure.
Yet, as crazy as that might sound, this is not too far off from the message many brokers and agents are sending prospective homebuyers. I’m not suggesting anyone is doing this intentionally, but consider the following facts to better understand this reality.

A national survey of active home shoppers across 25 major metropolitan areas conducted by BHI Inc., a consortium of 32 of America’s largest home builders, found:

• 19 percent are determined to buy a new home and will not consider resales.
• 35 percent want to explore both new and used homes in their search.
• 46 percent are focused on searching the inventory of resale homes only.

Mortgage applications decreased 2.3 percent from one week earlier, according to data from the Mortgage Bankers Association’s (MBA) Weekly Mortgage Applications Survey for the week ending November 15, 2013. This week’s results include an adjustment to account for the Veteran’s Day holiday.

The Market Composite Index, a measure of mortgage loan application volume, decreased 2.3 percent on a seasonally adjusted basis from one week earlier. On an unadjusted basis, the Index decreased 13 percent compared with the previous week. The Refinance Index decreased 7 percent from the previous week. The seasonally adjusted Purchase Index increased 6 percent from one week earlier. The unadjusted Purchase Index decreased 8 percent compared with the previous week and was 3 percent lower than the same week one year ago.

The refinance share of mortgage activity decreased to 64 percent of total applications from 66 percent the previous week. The adjustable-rate mortgage (ARM) share of activity remained unchanged at 7 percent of total applications.

The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,000 or less) increased to 4.46 percent from 4.44 percent, with points decreasing to 0.38 from 0.44 (including the origination fee) for 80 percent loan-to-value ratio (LTV) loans. The effective rate decreased from last week.

Most people are familiar with the various reasons a homeowner refinances their home which generally result in two major benefits: saving interest and building equity.

There is however another reason to refinance which may not be as common which is to remove a person from the loan. In the case of a divorce, when one party wants to keep the home and the other party wants their equity out of the home, it is possible for the remaining party to refinance the home. If the equity is sufficient to justify it and the remaining owner can qualify for the new loan, the refinance can provide the proceeds to buy out the other spouse.

Refinancing to remove a person from the loan could also involve a situation where two or more heirs jointly own a property and have differing opinions on when to sell. The same situation could apply to a rental property with multiple owners and the refinance would provide a way to buy out a partner.

Sometimes, it’s not about taking cash out of the home to buy out the other party. If a person’s name is on the mortgage, they’re responsible if it goes to default. One party may be willing to deed the home to the other party but it doesn’t necessarily relieve them of the liability of the mortgage they originated.

Many times, once a person has made their mind to move on, they’ll take the fastest and easiest way out. Removing a person from the deed or a mortgage is a reason to consider obtaining legal advice to protect your interests. Refinance Analysis calculator.

Reasons to Refinance

1. Lower the rate
2. Shorten the term
3. Take cash out of the equity
4. Combine loans
5. Remove a person from a loan

Strengthening house prices and increased interest rates in metros across the country contributed to lower housing affordability in the third quarter, according to the National Association of Home Builders Housing Opportunity Index (HOI), released recently.

In all, 64.5 percent of new and existing homes sold between the beginning of July and end of September were affordable to families earning the U.S. median income of $64,400. This is down from the 69.3 percent of homes sold that were affordable to median-income earners in the second quarter, and the biggest HOI decline since the second quarter of 2004.

“Housing affordability is being negatively affected by a ‘perfect storm’ scenario,” observed NAHB Chairman Rick Judson, a home builder from Charlotte, N.C. “With markets across the country recovering, home values are strengthening at the same time that the cost of building homes is rising due to tightened supplies of building materials, developable lots and labor.”

“The decline in affordability is the result of higher mortgage rates and the more than year-long steady increase in home prices,” observed NAHB Chief Economist David Crowe. “While affordability has come down from the peak in early 2012, the index still means a family earning a median income can afford 65 percent of homes recently sold. Some of the decline in the affordability index could be the result of a loss in some more modest priced home sales as tight underwriting standards have limited the purchases by moderate income families.”