I recently answered a question that I thought might be helpful to others, so I am posting it here. If I get positive feedback on Q&A’s, then  I may start a Q&A blog… so please let me know. Thanks.

-Question:

How do power lines above or in real close proximity to the property affect value and sales? Im seeing a lot of vacancy near power lines and heard that people tend to feel they are unsafe?

-Answer:

There is a lot of mixed opinion about the safety of homes in close proximity to High tension powerlines. You can read a ton of information about it by googling “homes near high tension powerlines”. I think it is best to do your own research, and come to your own conclusions. They do have a dramatic negative effect on home prices and days on the market. There is no set amount or percentage, but more of a trend. Besides the health concerns, there is the visual, or eyesore impact as well. I believe the impact is greater in a slow market like we have now. But when the prices get low enough buyers will appear. Just remember, that you may get a deal now, but you will also get less when you sell, than comparable homes that are not close to the powerlines. Hope this is helpful.

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Article courtesy of the Wall Street Journal
The financial crisis was the result of home buyers’ rational reactions to misaligned incentives – not fraud, argues Todd Zywicki, a George Mason University law professor and a Mercatus Center senior scholar.

Zywicki, who has studied the financial meltdown, argues that taking out a risky bank loan looks like a foolish choice today, but at the height of the housing boom was actually a smart decision for many people.

He says the crisis began when the Federal Reserve pushed interest rates to extreme lows from 2001 to 2004, making adjustable rate loans very attractive. It wasn’t until the Fed pushed rates back up that people walked away from their loans.

In the next phase of the crisis, Zywicki says, the availability of foreclosed properties pushed down home prices, which led to more home owners walking away from their properties. Now in the current phase of the decline, unemployment has led to even more foreclosures.

Zywicki writes: “The problem isn’t consumer gullibility or ignorance. Borrowers have shown they understand, and act on, the incentives they face all too well.”

Your thoughts and comments are appreciated.. Thank You.
Source: The Wall Street Journal, Todd Zywicki (02/19/2010)

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I often get asked “is this a good time to buy or sell a home?”

So, I created this Realtor article review, and information for you.

Your questions and blog comments are appreciated.  Thanks and have a great day!

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