Aahhh, trees

I've found that www.zillow.com now has a 3-d view available for my home, in addition to the straight-down from a satellite views that had been there before. These low-altitude fly-by photos are being taken through Microsoft's Virtual Earth program. It's cool--and creepy--to see these shots of your own home. Ours were taken midwinter, within a few weeks after a snowfall, judging from the sand still left on the roads. The shadows indicate that the fly-by was around 10 or 11 a.m., and since both cars were parked in their usual spots, it was most likely on a Saturday. Luckily, the bare tree branches are still dense enough so you can't see directly onto our porch or patio. The view from the south was shot more recently--a dense canopy of green leaves obscures practically the whole neighborhood. Privacy is such a precious, fragile thing, and it's so easy to lose. I'm starting to think about how we might add more tall evergreens to our landscape.

What a way to thank veterans

If a novelist wrote it, you wouldn't believe it. But today's newspapers report that a home burglary in Maryland earlier this month could expose 26.5 million U.S. veterans (including some spouses) to a serious risk of having their identities stolen. The burglars took computer files containing names, birth dates and Social Security numbers--a data trifecta that can be used to set up phony credit accounts using a stranger's name and good credit history. What should you do about it? Stand watch over your credit accounts, that's what. And you'll have to be on guard for a good, long time. There's no telling when somebody might choose to use that data to go on a spending spree. Take advantage of the free credit reports that federal law requires be made available to consumers. You're allowed one free report each year from each of the three major credit bureaus. (You can spread the requests out over a couple of months, to better monitor changes.) Go to www.annualcreditreport.com to make the request. Another option is to enroll in the "Score Watch" service offered by the Fair Isaac Co., a company that sells credit scores to lenders. A sudden change in your scores could very well indicate that an impostor is using your good name. That service costs $79.95 per year (with a three-month free trial) or $7.95 per month, with a three-month minimum. You'll find it at www.myfico.com.

What if inflation returns?

Could inflation really be coming back? Stock investors certainly thought so over the last week. Higher-than-expected Consumer Price Index numbers are being blamed for much of the Dow Jones Industrial Average's 437-point fall over the course of just one week. And long-term interest rates are inching up at a faster rate than short-term rates, another sign that investors see inflation ahead.

What might this all mean for housing markets? Inflation, historically, has been kind to real estate. Home values tend to stay a couple of steps ahead of the inflation rate, and homeowners repay their mortgages with dollars that are worth less than when they borrowed them. Rates on a 20- or 30-year fixed-rate mortgage can be expected to jump, though, should inflation return. And if the stock market starts to look less promising than it had during the first 4 1/2 months of 2006, investors may once again decide that real estate is a better bet than stocks, which would firm up home prices. If you think inflation really is poised to return, this could be an opportune time to buy a property at today's softer prices (perhaps from a condo-flipper who's been scared silly by the real estate market's turnaround), and lock in your costs with a long-term, fixed-rate mortgage before rates go higher.

Not afraid to move up

Clearly, the housing market in my little suburb near the nation's capital has changed. There are more homes on the market than I've seen in years, and my real estate agent has sent me the third notice about price reductions (plus a hardwood floor re-do) on a nice Victorian she's been trying to sell since winter. But I wonder if the weaker market has actually encouraged more owners to put their homes up for sale--and not for the usual reasons of financial hardship. Look at it this way: In last year's buyer's frenzy there was a real risk for move-up buyers that they could be stranded without a home. They could sell their homes in a heartbeat--but then they'd have to jump into that wild sellers' market and pay too much for a replacement. Without a compelling need to sell, it was simply too risky to give up a good-enough old home, so many owners stayed put. This year, they can see that it's going to be harder to sell their home and that they may get less for it than they would have last year. But with a big equity cushion under them, that may be tolerable. At least they see a good supply of move-up homes available to them once they finally get the old place sold. And if the move-up home's price declines along with the old home, the difference is a wash, anyway.

Which first, wind or water?

In Gulf states still trying to recover from Hurricane Katrina, there's a battle between consumers and insurance companies over which force damaged homes first: wind or water? You see, wind damage is covered by homeowners' policies, but flooding isn't. If a hurricane-driven storm surge floods your home, you're out of luck...unless you have special flood insurance. But if the wind blows your roof off and then the rain ruins your belongings, that's usually covered. The lesson for homeowners at the start of this year's hurricane season: If wind causes damage to your home, document that fact pronto. Get photos and a record of the date and time, to ensure that any unavoidable water damage that follows the wind damage will be covered. The other big lesson: If there's any reasonable risk of flooding at your home, buy federal flood insurance now. There's a 30-day waiting period before it goes into effect. Policies are available through ordinary homeowners insurance companies. For info about flood insurance: www.floodsmart.gov

Homeownership numbers slip

It really is harder to own a home, especially if you're young. High prices and rising interest rates are starting to chip away at the nation's homeownership rate. The share of Americans who owned their home peaked in late 2004/early 2005 at just over 69%. But the U.S. Census Bureau reports that number has slipped a bit, down to 68.5% in the first quarter of 2006, a decrease of 0.87%. Homeownership rates are lowest, under 65%, where homes are most expensive, the Northeast and West. (That was true even during the peak of the boom.) More worrisome is the recent slippage among people younger than age 35. Their homeownership rate shrunk most during the first quarter, slipping 1.9% to a rate of 42.3%. Compare that to people age 55 or older--more than 80% own their own homes, a number that hasn't changed significantly since the peak of the boom.

You CAN guard your phone number

It turns out there is a way to get to online listings from www.Prudential.com without giving up your phone number. If you go through Yahoo, http://realestate.yahoo.com/ you do not have to register to browse and map the listings. If the main photo makes you want to see more, however, you'll need to register to get access to extra photos.

Where the listings are

My neighbors and I were surprised to see a new "For Sale" sign appear on the front lawn of a home just two doors down from my own. We hate to see this nice family move away, but it gave me a good excuse to check out the listings available at www.prudential.com. It's the company you reach when you click on "Real Estate" on www.yahoo.com. Prudential's PR person had recently boasted to me that their revamped site couldn't be beat for its stock of up-to-date listings.

First, let's go over what I didn't like about www.Prudential.com. As with most broker-run sites, I first had to supply my name and full contact info, plus details on my home-buying intentions. I noted that I was just browsing, but could not opt out of providing my home phone number. My options for preferred calling time (day/evening, etc.) did not include "please don't call." I clicked "anytime," and it wasn't five minutes later that I had a live person phone me up, asking if there was any way they could help me, and offering to put me in touch with some local agents. Their efficiency is impressive, if a little spooky, but telephone is the last way I want to be contacted by practically anyone who doesn't have refrigerator priveliges in my kitchen.

The good news: Not only did they have a good share of listings for my little suburb (which is such a small community that we're often overlooked by online services), but they had the listing info--complete with the price and half a dozen photos--for my neighbor's home. That was about 24 hours after the "For Sale" sign appeared on the front lawn. Impressive. But I wish they'd give me a "do not call" option.

Beds reaching new heights

At least they're reaching new heights in terms of dollars. More from furniture industry expert W.W. "Jerry" Epperson, Jr.: As mattresses have grown bigger and thicker over the past 10 years and queen size has replaced "full" as the norm, we may be seeing a leveling out in the size explosion. Many older homes simply can't accommodate anything bigger. But price is another matter. Mattresses and box springs costing $3,000 to $4,000 may become typical, with prices going as high as $12,000. Some shoppers are spending more on the bedding than on all the furniture in the room, combined. Next thing to watch for: Mattresses made of gel.

Incredible shrinking furniture?

You'd better take your tape measure the next time you shop for furniture. Some manufacturers are making the depth of "case goods," such as bookcases and cabinets shallower, says industry expert W.W. "Jerry" Epperson, Jr., a founder of the Mann, Armistead & Epperson investment banking firm in Richmond, Va. Why the shrinkage? It's not to accommodate your decor; it's so the furniture fits more easily in shipping containers from Asia. "Always be suspicious of a showroom with big potted plants next to the furniture. They're trying to camouflage the fact that the pieces are set six inches away from the wall (to disguise the shallower depth)," says Epperson.

Get credit for saving energy at home!

With the costs of electricity, natural gas and heating oil soaring, it's time make those long-though-about improvements to your home's energy efficiency. And, just for improvements made during 2006 and 2007, the federal government is offering a tax credit of up to $500 to help pay for the job. (Tax credits are even better than tax deductions because they directly reduce the amount of tax you owe. A $100 tax credit cuts your taxes by a full $100. If it were a $100 tax deduction you'd reduce your taxable income by $100, and shrink your tax bill by only $28 or even less.)

You can get a tax credit for up to 10% of the cost of buying (but not installing) new insulation, storm windows and doors and new Energy-Star-certified windows. (The tax credit on windows is capped at $200.) Credits ranging between $150 and $300 are available for qualified furnaces, boilers and central air-conditioners. And you can claim a credit of $300 for a new, qualified water heater.

For all improvements except new windows (for which the Energy Star seal is enough evidence), you will need to ask the sales person for a copy of the manufacturer's certification that the product complies with the program's efficiency standards. Keep that certification on file with your records; you don't have to send it in with your 2006 tax return next spring. Links to IRS documents fully explaining the rules are posted on the www.energytaxincentives.org website maintained by the Tax Incentives Assistance Project, which is a nonprofit coalition of groups including the American Council for an Energy-Efficiency Economy and the Alliance to Save Energy.

Second thoughts for move-up buyers

You may find yourself with a typical dilemma facing homeowners who'd like to move up to a better home, but who don't absolutely have to move. You don't want to sell your current home unless you've found just the right home to replace it. Often, the solution is to buy the new home and then place the old one up for sale. It's always a risky strategy, after all you very easily could end up owning two homes for a while. (I know; I've done it myself, and owning two is no fun at all.) But a new survey from RealEstate.com should give you pause before going that route.

They surveyed 550 homeowners who simultaneously sold and bought a home over the past five years. (That boomy period may have been the easiest time ever to sell a home in the United States.) Results show that 42% said the uncertainty of not knowing how quickly their home would sell was difficult--or even more difficult than they expected. Sixty-two percent of them were successful in closing the sale on their old home and move into the new one without a significant lapse in time. The rest either had to move to a third, temporary, home or ended up owning two residences for a while.

Most, 78%, said they had no regrets about the course they took. But, among those who would have done things differently, men were more likely than women to say they would have sold their old home before making an offer on a new one, and women were more likely than men to say they never would have moved at all. Remember, this is the opinion of people who were trying to sell a home in a time when homes in most communities were selling faster than beer in a ballpark. In today's slower market, it's reasonable to expect the process to be even more stressful.

In the beginning.....

Welcome to the beginning of Razziblog, what I hope will be a friendly forum for the exchange of independent intelligence on a broad range of housing and other personal finance issues. I'm the author of The Fearless Home Buyer, Razzi's Rules for Staying in Control of the Deal, which was published in January, 2006, by Stewart, Tabori & Chang. For the full scoop on that book, I'll refer you to www.fearlesshome.com.

The book is the product of about 20 years as a news reporter covering every nook and cranny of the home-owning, home-buying and home-selling landscape. With this blog I hope to offer whatever insights I can about the issues all of us face dealing with mortgage lenders, insurance companies, tax collectors, home-improvement contractors, real estate agents, moving companies, and whatever else comes up. If we're all lucky, the rest of the community will add to the mix the stories of their problems--and their best ideas about solving them.