A: Interestingly enough, this is a common question at the moment.  Here are a few points to consider.  .

1. What's the current state of your state?  If you feel like the property has pricey upgrades that would be relatively destruction-prone, factor that into your decision-making, and into the deposit and monthly rent price you set if you do decide to rent it out. If the paint and flooring is livable, but you'd want to upgrade it before you sell, renting it out in its current condition might make sense.

2. Research your local rental market. Talk to local property management companies or real estate brokers who specialize in rentals to get several estimates of how rentable the place is (or what it would take to make it rentable), and what rent you can realistically expect to receive.

Then, before you make a decision, do a conservative cash flow analysis, getting clear on what you think you could rent the place out for and how that maps against your existing monthly obligations, like your mortgage payment (if any), property taxes and insurance, as well as any increased expenses you'll have for maintenance or property management.

And while you're at it, talk with these same local professionals or visit your local landlords association and request a briefing on whether there are any rent- or eviction-control ordinances that would apply to your property.

It can be extremely expensive to evict even nonpaying tenants in areas with tight eviction-control laws; that should definitely be a factor you toss on the scales as you balance the factors relevant to your decision.

3. Tenant-proof the place. Replace carpet with tile, trade out fancy lighting fixtures and window coverings with standard issue equivalents, and if you have high-end appliances, consider switching them out for Craigslist buys.

Keep in mind that if the property is a luxury home, and you plan to charge a premium rent for it, you might need to keep higher-end touches in it, even if that means putting them at risk.

4. Pick your tenant carefully. It's tough to rent any property you own out to tenants, but it's especially tough when that place is or once was your personal home. You might be especially anxious that they will destroy things that have particular personal value to you, and it's tough to know from someone's credit report how they will actually live in your home.

Be mindful of this when you consider decisions like how to find a tenant (i.e., by posting a free ad or by hiring a property manager with a tough screening process for prospective tenants) and whether to allow pets.

5. Consider "rent to own." Lease-options can be a great deal for all sides in the current market climate. You might be able to charge a premium sales price, and a renter who might not qualify for a mortgage right now because of a recent short sale or foreclosure might be able to move his or her family back into a long-term home.

Also, even those lease-option tenant/buyers who end up not exercising their option to buy do tend to take better care of their homes than tenants who have no long-term interest in or commitment to the home.

 (From Traverse City Business News)

Second-quarter signs suggest the worst might be over

By Al Parker

REGION – The uptick is on. After three grueling years of plummeting, then shaky home sale prices (both median and average), and volume sold, the region is looking poised for a comeback.

The proof? Small, but mostly steady growth in the first two quarters of 2011. Residential units in the Traverse City region are selling for slightly higher prices this year than during the same period last year. For the first six months of the year, there were 932 residential units sold in the five-county area, which includes Grand Traverse, Antrim, Benzie, Kalkaska and Leelanau counties.

That volume is down from the same time period in 2010 when 983 units sold. But the units that are selling are generating a slightly higher average selling price ($171,102 to $169,156) and median sale price ($129,950 to 127,000).

The numbers promising  – at least at some levels, says Brad Platt, co-owner of Century 21 Northland.

“I do feel that we have bottomed out. The only debatable point there is which price point. Under $200,000 is a hot price point, and the inventory there is much more limited than, say,  the $300,000 to $400,000 price point.  In my opinion, the worst is certainly behind us.”

However, Platt warns that the positive trend won’t be without some negatives in the months to come. “We will have a lot of foreclosures move through the market this year. Fortunately, they don’t last long on the market.”

That’s for good reason, says Traverse City realtor Jack Lane of Real Estate One: “Traverse City continues to be a sought after place to live. When the decline is officially over, we’ll go back to being a robust market. In comparison to other Midwest markets, we shine.”

Traverse City realtor Meagan Luce of Century 21 Northland is hopeful but wary. “In my opinion, the median and average sale prices are up slightly because there are less distressed properties on the market than there were a year ago,” she says. “Distressed properties, whether they are bank-owned, short sale, foreclosure or auction properties invariably drive prices down.

According to Luce, in the first two quarters of last year 35 percent of the sales in the region were distressed sales, compared to only 28 percent this year. Also, she notes, last year’s sales figures were boosted by a homebuyer tax credit that expired in May, 2010.

“Keeping that in mind, I think that the fact that the number of sales last year and the number of sales from this year are so close is certainly a positive indication of stabilization in our market,” she adds.

So what do realtors see for the rest of the year?

“We are very busy and seeing a lot of pent up buyers looking for a great deal before prices start to inch up and mortgage rates,” says Elk Rapids realtor Stephen Karas of Exit Northern Shores. “Most of my agents, including myself, have been showing homes very consistently for the past few months.”

According to Lane, the underlying fundamentals of the area are growing stronger – population inflow vs. outflow, supply and demand, employment, wages and interest rates. “If our ‘feeder areas’ like Detroit, Chicago, Indianapolis, etc., continue to improve, the appetite for northern Michigan real estate will rebound,” he predicts.

Is it safe to say we are rebounding now?

“In my opinion, we are at the end of the housing slump. However, I think the climb of home sale prices is going to be slow,” says Luce. “We are going to have a new ‘housing market norm,’ and I don’t believe we may ever see the over-inflated prices we saw at the height of the housing market bubble.”

Karas feels warily optimistic about ending the housing market slump. “I am cautious that we are finally starting to see light at the end of the tunnel of the slump,” he says. “It might not be completely over, but we’re definitely a lot closer than in recent years. Our growth in population in our five-county area is helping us inch out much quicker than other parts of the state and country.”

Lane notes that consumer confidence is crucial to ending the slump. “For the past four years, we’ve seen a lot of false starts in consumer confidence,” he says. “When I have four deals headed to closing in the coming week, and ‘60 Minutes’ does a segment on how terrible the real estate decline is, I take Maalox and wrist restraints with me to the office the next morning.”

According to the Traverse Area Association of Realtors, for all of 2010, there were 2,045 residential units sold with an average price of $185,246 and a median price of $137,500. Those homes were on the market for an average of 192 days, just over six months.

There were 1,087 sales in Grand Traverse County followed by 262 in Antrim, 247 in Leelanau, 231 in Kalkaska and 218 in Benzie.

So what type of homes are selling or not selling?

“We have been seeing a lot of waterfront buyers this summer as always,” Karas says. “But even more-so recently.”

Like Platt, most of Luce’s sales have been in the $200,000 to $300,000 range. “Almost 30 percent of my buyers this year have purchased second homes and I currently have several second home sales pending.”

According to Lane, about 80 percent of the sales in this region are under $200,000. “Thanks to interest rates, owning a house in this range is often cheaper than renting…and there are still programs with 0-3 percent down to help with those sales, so that area’s strong,” he says. “Also the family move-up market is pretty strong. There’s been a move to downtowns going on for the past 10 years – but it’s very strong now.”

The weak segment of the market is the higher priced homes at $500,000 or more, according to Lane. To sell those homes, they have to be in top condition and priced aggressively against the competition.

“People move because life happens to them – babies come, empty nesters, retirement, death, divorce or even more lively events,” Lane notes. “In the early years of this decline, sellers didn’t ‘get it’ and buyers thought they wielded a preposterously big hammer. Today, both sides are coming to grips with where the new value levels are and are coming back into the market because, well, life has been happening to them.”

Happily, says Platt, compared to the rest of the state, most of the action is happening here ­– and have a good chance to continue in that direction.

“This is arguably the best real estate market in the state of Michigan,” he says. “Based on the amount of cash deals we are seeing coming out of state – Texas, California, Washington D.C., and Florida, for example) it’s obvious that the word is spreading.                      “People that are sitting on cash are typically very well educated financially and have the patience to wait till the time is right,” he adds. “The only X factor right now is the politicians in Washington and Wall Street. If things move forward positively on those two fronts and consumer confidence has an uptick, our markets may accelerate sooner than expected. Broader access to jumbo loans will also help things along. This is actually a very exciting time in real estate.” BN

Even with the help of an experienced real estate agent, the negotiating process can be frustrating and confusing. Many of us aren't involved in high-level business negotiations in our day-to-day lives, and even buyers who are the savvy businesspersons aren't used to having a personal stake in the outcome. Good negotiating in real estate isn't about coming out victorious over the other side, it's about understanding the seller's motivations and striking a deal that satisfies all parties as much as possible.

The following tips can help you survive the negotiation of a real estate purchase:

Don't focus on price only 

Many buyers make the mistake of thinking that price is the only point up for negotiation. Buyers can often negotiate quite a bit of value into a contract besides the number on the bottom line such as the preferred closing date, whether the seller might be motivated to pay closing costs, concessions for home repairs, and so on.

Don't move too slowly

Real estate can be an aggressive commodity, and buyers who rest on their laurels run the risk of losing out on desired properties. On the other hand, buyers who have their financing in order from the start are best positioned to make aggressive offers and negotiate from a position of strength. The first step to being able to getting a jump on a hot property is having your ducks in a row from the start.

Should you find a property that matches many of you wish list items, don't make the mistake of being overly hesitant. Make a firm, direct and quick offer to a motivated seller, stipulating a time limit for the response, and you just might get the terms you request.

Don't focus on price only

Real estate can be an aggressive commodity, and buyers who rest on their laurels run the risk of losing out on desired properties. On the other hand, buyers who have their financing in order from the start are best positioned to make aggressive offers and negotiate from a position of strength. The first step to being able to getting a jump on a hot property is having your ducks in a row from the start.

Should you find a property that matches many of you wish list items, don't make the mistake of being overly hesitant. Make a firm, direct and quick offer to a motivated seller, stipulating a time limit for the response, and you just might get the terms you request.

Avoid responding on the spot

While you want to move fast, particularly in a hot buyer's market, never respond verbally to an offer or counteroffer. Ask for all offers in writing and respond in kind. You can still move quickly and with the help of your real estate and legal representation, but don't make any "handshake agreements" on the spot may lead to issues later on.

Keep negotiations professional

It can be difficult not to take negotiations personally, especially when you potential home is at stake. The need to stay calm and removed from the situation is a strong reason to have the guidance of a dedicated real estate professional who will represent your interests while keeping an even keel. As negotiations progress, remain composed and direct in all you dealings. Ask the seller to be specific about any terms they aren't satisfied with and ask for simple clarifications regarding the changes they would like to see. If a seller doesn't respond well to that sort of request, be prepared to walk away. Remember that ultimately this is just business, even if from a personal standpoint the stakes are raised.

Don't make a lowball offer without a reason

There can be very valid reasons for making an offer significantly below the seller's asking price. The home may be priced well above comparable homes in the market, may have recently been assessed at a lower value, or may require costly repairs or updates. Making a lower offer under these circumstances is well within reason and, if done tactfully, can persuade the seller to adjust their asking price down.

If you're hoping to get the seller to greatly reduce the price simply to meet your budget or ensure a good "deal", you're not negotiating in good faith and risk alienating the seller entirely. Keep the seller's desire to get good value for their home in mind when submitting an offer below the asking price, and be prepared to justify the difference.

Don't be afraid to ask

Shrewd negotiators assume that nothing is ever truly off the table, at least not entirely. Done correctly, it doesn't hurt to ask the seller for special concessions. Interested in a piece of antique furniture or the barbeque on the back patio? Hoping the seller will pay to replace worn roofing or siding? Ask for what you're want, within reason. As always, be prepared to remain flexible on other terms that the seller may ask for.

Don't obsess

When it comes to the negotiation for what may be your next home, its easy to become anxious and follow the process relentlessly. Try to remember to relax, and if at all possible leave much of the process to your professional guides. Doing so will leave you less stressed and more able to approach the negotiation without frayed nerves

1. Your home has lost value over the past several years, this is a known fact.  Your home most likely lose even more value over the next one to two years and it may be as many as 5-7 years before you reach back to the value that your home has today.  If you don't need to sell and you can wait this out, then maybe selling today is not best for you.

2. If you are selling and buying again in the same area, you are trading apples for apples.  In fact if you are upgrading to a larger more expensive home, chances are that the new home you are buying has taken a larger price hit than the one you are selling.  

3. Mortgage interest rates remain at historic lows.  This means that if you sell and buy again in this market then you can take advantage of these low rates. They won't hang around forever.

4. Long term, home ownership remains a great investment.  In these times of economic chaos there are few places that you can place your investment dollars that will have the security and the long term return.  

5. If you are selling in one market and moving to another, there is a chance that the market you are moving to may have taken a larger price hit than the one you are leaving.  This is something worth checking into, because many major Real Estate market areas have taken huge hits on home prices and it just might be a situation that you can easily take advantage of.

The decision to sell a home in this market is a large one for most people, but there are some advantages for many people that they may never see again.  If you are considering the sale of your home and would like some professional advice, please contact me.  I would be more than happy to go over the plus's and minus's of your particular situation with you

Pending home sales increased in February but with notable regional variations, according to the National Association of REALTORS®.

The Pending Home Sales Index, a forward-looking indicator, rose 2.1 percent to 90.8, based on contracts signed in February, from 88.9 in January. The index is 8.2 percent below 98.9 recorded in February 2010. The data reflects contracts and not closings, which normally occur with a lag time of one or two months.

Lawrence Yun, NAR chief economist, says it’s important to look at the broader trend. “Month-to-month movements can be instructive, but in this uneven recovery it’s important to look at the longer term performance,” he said. “Pending home sales have trended up very nicely since bottoming out last June, even with periodic monthly declines. Contract activity is now 20 percent above the low point immediately following expiration of the home buyer tax credit.”

Yun notes there could have been some weather impact in the February data. “All of the regions saw gains except for the Northeast, where unusually bad winter weather may have curtailed some shopping and contract activity.”

The PHSI in the Northeast fell 10.9 percent to 65.5 in February and is 18.4 percent below a year ago. In the Midwest, the index rose 4.0 percent in February to 81.1 but is 15.9 percent below February 2010. Pending home sales in the South increased 2.7 percent to an index of 100.3 but are 5.3 percent below a year ago. In the West, the index rose 7.0 percent to 105.6 and is 0.6 percent higher than February 2010.

“We may not see notable gains in existing-home sales in the near term, but they’re expected to rise 5 to 10 percent this year with the economic recovery, job creation, and excellent affordability conditions providing confidence to buyers who’ve been on the sidelines,” Yun said.

Source: NAR

What are real estate professionals saying to homebuyers and sellers about current market conditions? The successful brokers and sales associates are talking about the strengths that exist in the market. Below are positive angles that appeared recently in the media and underscore why it is a good time to buy real estate.

NAR: Existing Home Sales Rise 12% in December

Sales of U.S. previously owned homes jumped more than forecast in December as buyers tried to lock in low mortgage rates before the economic recovery pushed borrowing up further. Purchases of existing houses, which are tabulated when a contract closes, increased 12% to a 5.28 million annual rate, the most since May, figures from the National Association of Realtors showed today in Washington.

"Sales have been recovering steadily from depressed levels," Aaron Smith, a senior economist at Moody‟s Analytics Inc. in West Chester, Pennsylvania, said before the report. "A better economic backdrop should boost confidence and push potential homebuyers off the sidelines."

(From Mynorth.com)

Signs of Recovery in Traverse Area's Second Home and Waterfront Market

According to Traverse Area Association of Realtors,Traverse City real estate sales in the summer of 2010 were significantly up over 2009, based on dollars.

The Traverse Area Association of REALTORS® is reporting a sign of recovery in the Traverse City real estate market when comparing cash sales from 2009 to 2010. The engines driving this Northern Michigan real estate improvement were second home sales and purchases of waterfront property.

The years 2007 to 2009 were not particularly kind to the waterfront and second home market anywhere. The Traverse region of the northwest corner of Michigan’s Lower Peninsula was no exception. Long a sought after area for waterfront and second home activity there was a serious decline in this market segment as the economy continued to deteriorate.

Then in mid 2010 this particular market demographic shifted toward an increase in activity driven mostly by a series of events. Buyers who had been watching the market anticipating the bottom began to realize that the recession, while officially over in 2009 had begun to turn around, albeit weakly. Noting this change and relating it to the bottom of the housing market buyers started to quietly return while the pricing adjustments made to real estate throughout the region were still down.

Buyers with cash or some cash and excellent credit were able to take advantage of historically low interest rates. Interest rates unseen since the Herbert Hoover administration (1929-1933) were likely a large incentive for this rekindled interest in waterfront and second home properties especially when affixed to 30-year fixed rate mortgages.

In the summer of 2010 the Traverse Area Association of REALTORS® statistical analysis showed that while number of residential units sold was slightly down over the previous year, the dollar volume was up significantly. In 2009 a large part of the activity recorded in home sales was attributable to the first time homebuyer market. Yet as the pricing strata were analyzed in the same period (June 1 to August 31) for 2010 it was noted that there had been significant activity in the $500,000-to-$749,000 price range.

Further investigation inside these pricing strata would seem to indicate that waterfront homes had begun to move again in the second quartile of 2010 as cash-ready and qualified buyers had begun to take advantage of the regional housing market corrections.

Yet not all of the increase in activity was attributable to waterfront properties, as some of the housing stock began to be absorbed by buyers willing to invest in second homes in the area, most likely as a way to take advantage of these opportunities in an effort to lock down a retirement location. The Traverse region has been cited several times over the last few years as a retirement hot spot for young retirees 55 to 62 years of age.

Inquiries made of REALTOR® members have indicated that some buyers are in the midst of planning for their retirement or have been forced into retirement by circumstances in the job market. Many of these buyers are from areas within several hours’ drive of the region and are familiar with the natural beauty of the area.

Many of these new buyers are especially savvy of the medical facilities, arts and cultural activities, outdoor sport options, culinary reputation and other amenities of the area. These lifestyle enhancements are helping to attract attention to the region and the local housing stock. Increases in web based traffic from outside the region on the REALTOR® associations website is evidence of this interest.

While inventories of various levels of housing stock have eroded somewhat over the first two quarters of 2010, there still exists a considerable selection throughout the five county region. As the market pricing improves there will likely be some new properties added to the inventory by sellers who have been waiting out the economic tempest. Yet buyers interested in waiting to see what may become available or if pricing may further be reduced could also find that interest rates have escalated, thereby creating an offset in perceived value by the consumer.

Many times the mere mention of waterfront or second home property conjures up visions of large houses positioned on large stretches of bay front beach. Yet in this geographically gifted region this is not the case. Beautiful settings and waterfront access can be manifest along the plethora of rivers and streams that crisscross the five counties of the Grand Traverse region.

Dotted among all of these counties are dozens of inland lakes, some quite sizeable and all quite beautiful. Many of these lakes are all-sports lakes that have been family retreats for over 150 years. Many of the rivers and streams are ideal for kayaking, canoeing and fishing. In fact several of these streams and rivers are rated as blue ribbon trout streams and are highly prized by fishing aficionados throughout the country and around the world.

In fact as foreign currency gained strength over the dollar during this period of economic hardship there has been an influx of foreign nationals with an interest in the regional real estate market. Often cash buyers, these global customers are leveraging their buying power and the lower market pricing to acquire real estate throughout Northern Lower Michigan and the Upper Peninsula.

Second-home buyers are interested in either being on the water or within striking distance of it. In our five counties this is not difficult as there is an incredible amount of shoreline and an almost incalculable number of public access points to our bay, Lake Michigan, inland lakes and the watersheds that create them.

Did the sun shine on the northwest Michigan real estate market this summer? There are some signs that the clouds are parting.

From June 1 to August 30, 2010, the Traverse Area Association of Realtors (TAAR) reports that Leelanau County boasted $31.5 million in total dollar volume sales of single-family homes. During that same period in 2009, the county tapped out at $19.8 million. (2008 brought in $28.8, and 2007, $27.4.)

Grand Traverse County didn’t make such a leap. Its single family homes during the 2010 summer months rang in with a total dollar volume of $54.3 million, as compared to 2009’s $53.1 million. (2008 was slightly better with $56.7 million, but 2007 was significantly better, with $70.1 million.)

Though Leelanau’s dollar volume boomed from last summer to this one, its total number of homes sold this summer increased only by three: from 68 (in 2009) to 71. The number sold in Grand Traverse actually dropped a smidge – from 302 in 2009 to 294 this summer.

Average home prices rebounded a bit in Grand Traverse County. After a steady drop from $211,996 in 2007 to $176,108 in 2009, 2010 reversed the fall with a slight uptick to $184,936.

Leelanau’s average home price, meanwhile, which had bottomed out at $292,563 in 2009, rebounded this summer to an average of $443,701 – just a few thousand less than it’s 2008 summer average, and $100,000+ more than in 2007.

And what about all that time homes are supposedly sitting for sale? The average was 184 days in Leelanau and 197 in Grand Traverse – both more than a month longer than 2007’s averages, when both counties saw homes sit for an average of 139 days or fewer.

A number of realtors say most of the numbers are good news – for buyers anyway. “My members are telling me that selection is at the best they’ve ever seen it, the prices are best they’ve ever seen. And there’s great interest rates right now,” says Kim Pontius, TAAR’s executive vice president.

What kind of buyers? Well, the truth may sting a little: “These are the times the rich get richer, ” says Brad Nichols, Associate Broker & Co-Owner of Remerica-Traverse City. “Cash is king again. I’ve had, in the past year, probably half a dozen cash sales. It’s unusual, but we’re seeing those buyers, the folks who have the family money or whatever, come out of the woodwork because they know this is the time to take their cash out and make it work for them.”

Hence, a couple hot spots bubbling: waterfront homes –“We’re starting to see more and more activity there,” Pontius says – and the rental market.

“The rental market has come back into play,” says Nichols. “And all the foreclosure properties are boosting that along. Rental property isn’t just a tax write-off anymore. You can turn a profit because the rates and the prices are low.

“But,” he adds, “the key is finding the financing to make it happen. Those that are cash buyers – this is a real candy store right now.”

As for the rest of us? Time will tell. “We’ve had five months of pretty good activity up here, on par with 2006,” says Pontius. “We just have to watch the jobs, watch consumer confidence, and watch the 4th quarter. The housing market is still precarious right now. But if we see steady activity in 4th quarter, that’s promising. If we don’t, we might be seeing a double dip in the economy and the housing market.”

Optimism for the Housing Market

Falling interest rates, an improving economy and a last bit of economic stimulus are helping the housing market stage a revival. In April alone, sales of existing homes jumped 23% from a year ago, according to the trade organization National Association of Realtors. Sales of new homes rose even faster, up 48% from a year ago. What's more, a growing number of economists believe the three-year plunge in housing prices is at an end.

-- "Is the Housing Market on the Rebound?," by Stephen Gandel, Time Magazine, May 26, 2010.

• The PHSI in the Northeast declined 3.3 percent to 75.1 in March, but remains 27.2 percent higher than March 2009.
• In the Midwest the index increased 1.2 percent to 98.9 and is 18.5 percent above a year ago.
• Pending home sales in the South jumped 12.7 percent to an index of 121.2, which is 28.3 percent higher than March 2009.
• In the West the index rose 1.9 percent to 99.9 and is 8.8 percent above a year ago.

“Another encouraging sign is the improvement in the availability for jumbo and second-home mortgages,” Yun said. “As bank balance sheets strengthen, it is just a matter of time before lending of non-government-backed mortgages steadily opens up.”

Source: NAR

Humane Resources: Kim Pontius and the Green Solutions 4 Expo

• 10. Pueblo, CO

  

  During one weekend every September, a tiny chile pepper nearly doubles the size of the city of Pueblo. Up to 100,000 visitors from all over the U.S. come to eat, drink and celebrate the “Pueblo Chile”  during the Pueblo Chile and Frijoles Festival. But anytime is a good time for foodies in Pueblo. The famed fire-roasted chile spices up burgers, hot dogs, tamales and more as restaurants pay homage, and the Farmers Market along the Riverwalk brings a bounty of fresh produce from local farmers. Locals swear by local favorite Magpies, the downtown restaurant featuring a fully stocked taproom downstairs. More microbrew suds are on tap at the popular Shamrock Brewing Co. And downtown bistro Restaurant Fifteen Twentyone fuses seasonally fresh ingredients with classic French culinary style. 

   

• 9. Logan, UT

  

  Hiking, biking and rock climbing around the beautiful Cache Valley area can work up an appetite. Fortunately, getting your fill isn't tough in Logan, Utah. Locals get their carbs with fresh baked bread and gourmet cookies from Old Grist Mill Bread Co. For the “best steaks in the Cache Valley,” according to Frommer's, head to Hamilton's, where the menu focuses on seafood and steaks perfectly prepared in the restaurant's open kitchen. More fine dining awaits with the sleek and contemporary Elements restaurant. A local favorite is Angie's Diner, home of the famous “Kitchen Sink” ice cream sundae. Bluebird Cafe, a classic soda fountain, has been serving up ice cream treats for nearly 100 years.

   

• 8. Wichita, KS

  

  If you're a native of Wichita, you've probably craved a loose-meat sandwich. Like a crumbly hamburger, the delicacy is a citywide obsession prepared for decades at Nu Way Cafe, a local fast-food chain also famous for its homemade root beer. Finer dining options abound also, and the city likes its sweets. Both Cero's Candy and Cocoa Dulce offer inventive as well as classic confections crafted from high-quality ingredients. For local suds, try River City Brewing Co., a popular brewpub in a converted warehouse in historic Old Town.

   

• 7. Albuquerque, NM

  

  Marrying traditional New Mexican cuisine with an independent spirit and hunger for diversity, Albuquerque boasts a truly vibrant dining scene. Named one of the 10 Best Cities for Local Food by the Huffington Post, the city also offers standout farm-to-table offerings like Flying Star Café, which uses fair trade, natural and organic ingredients. Beverages get a fair shake, too, with the unique artisan coffeemaker New Mexico Piñon Coffee and a number of wineries earning national acclaim. One of the oldest wineries in New Mexico, Casa Rondena recently got a nod from national food magazine Saveur for its Meritage Red, named among the 10 best reds in the U.S.

   

• 6. Eugene, OR

  

  Eugene comes about its growing food and wine reputation naturally. With the longest-standing farmers market in the U.S., a thriving slow sood movement and two-thirds of the state's wineries and vineyards in Willamette Valley, the city has all the right ingredients for an organic paradise. The area is home to a variety of successful organic food processors as well as upscale restaurants like Wine Spectator favorite Adam's Sustainable Table and artisanal shops like Euphoria Chocolate Co. Willamette Valley, Oregon's leading wine region, is home to more than 200 wineries and has been recognized as one of the premier pinot noir producing areas in the world.

• 5. Walnut Creek, CA
  

  

  Although it is next door to the foodie mecca that is the San Francisco Bay Area, the cozy community of Walnut Creek has enough culinary heft to stand on its own. Its annual Art and Wine Festival, recognized by the Contra Costa Times as East Bay’s Best Outdoor Festival, draws 100,000 visitors annually to sample award-winning local and regional wines and microbrews and delicacies from dozens of local restaurants. Some eateries worth more than just a taste include the back-to-basics bakery Walnut Creek Baking Co., tapas favorite Va De Vi and the Zagat-rated Italian mainstay Prima, which features one of the most extensive and distinguished wine collections in the world. Walnut Creek dining also boasts a bit of star power – guitarist Carlos Santana is a partner at Maria Maria, the regional Mexican restaurant chain that began here and is named for the musician's 1999 hit song.

• 4. Kansas City, MO

   

  
  

  Only in a city that's truly serious about its barbecue reputation could you find the Kansas Barbeque Society, the world's largest organization of barbecue and grilling enthusiasts. There are about 100 barbecue joints smoking in Kansas City, melding a mix of flavors and styles from across the country. But it's not all 'cue in KC – foodies can find a wide variety of cuisine ranging from earthy organic to decadent crepes to Stroud's, one of the last traditional fried chicken restaurants in the U.S. Esquire recently lauded the eatery as one of the restaurants “Where Men Eat,” writing: “the fried-chicken dinners are as fabulous as ever – cooked to order in a black skillet, served with … hot cinnamon rolls so good you’ll steal from your kid’s plate."

• 3. Boulder, CO

  

  Boulder's growing culinary scene and healthy reputation find a delicious way to bridge the gap between good and good-for-you. At fine dining restaurants like Salt, Black Cat Bistro and Frasca Food and Wine the emphasis is on seasonal, local ingredients – most of which come from  Boulder's well-established farmers markets. Combine that spirit with the town's health-conscious nature – it's won numerous titles as a top vegeterian-friendly dining choice – and it's little wonderThe Wall Street Journal recently called Boulder the "best small city for great meals we know of in this country."

   

• 2. Asheville, NC

  

  In earthy Asheville, food is so elemental that the locals have coined their own word for the city: Foodtopia. A thriving farm-to-table scene, a flourishing network of family farms and farmers markets and a growing roster of award-winning chefs combine to create the ideal food climate in Asheville. Year-round local food tours lead visitors to locally roasted coffee, gourmet shops and chocolatiers, artisan bakeries, specialty shops and breweries. Along with its 135 restaurants, 11 annual food festivals and 17 farmers markets, Asheville has a dozen microbreweries and five annual beer festivals – numbers that propelled travel blog Gadling.com to name Asheville one of the best cities in the world for drinking beer.

   

• 1. Traverse City, MI

  

   

  Known as the Cherry Capital of the World, the Lake Michigan resort town of Traverse City does a pretty good job with other foods, too. With plenty of award-winning restaurants, wineries, farmers markets and dairies, Traverse City has been called “a new foodie haven” by The Huffington Post, and Midwest Living magazine recently named it second on its list of the region's “best food towns.” At the heart of the accolades is an emphasis on the farm-to-table philosophy. At Trattoria Stella, where chef Myles Anton was nominated for a 2010 James Beard Foundation award, the menu of Italian fare takes care to note ingredients from local farms and dairies. For wine lovers, the city's Leelanau Peninsula and Old Mission Peninsula wine regions lie along the 45th parallel— the same latitude that gives the Bordeaux region of France its famous reputation. Get started with a self-guided foodie tour.

   

  So this is our list of the top 10 of the best food cities that might surprise you. Agree? Disagree? What city (and why) do you think is missing from the list?

  Check out our other Top 10 lists and discover more interesting facts about America's best places to live.

First, the Federal Reserve's Mortgage Backed Securities (MBS) purchase program will come to an end on March 31, just two weeks away! Without this program home loan rates could have been at least 1.00% higher...and potentially even higher...over the last year. Throughout 2009, the Federal Reserve was the primary buyer for MBS, purchasing as much as 80% of the supply in a given month. When this program ends, a lack of willing buyers will likely cause MBS prices to drop and rates to rise as a result.

In a recent Wall Street Journal article, it was estimated that 37% of all borrowers with a 30-year fixed rate have interest rates of 6% or higher. The article also quotes Credit Suisse that more than half could lower their rate by nearly 0.75%.

For prospective homebuyers, any increase in interest rates erodes your purchasing power. In other words, a 1% increase in rate represents an approximate decline in purchasing power by 10%. For example, if rates increase by 1%, people who qualify for a $200,000 purchase price today may only qualify for a purchase price of $180,000 afterwards.

The second shot will come on April 30th, which is the deadline for purchasers to get under contract to qualify for the Home Buyer Tax Credit program, which has been providing a tax credit of up to $8,000 to first time homebuyers and up to $6,500 to repeat purchasers.

If you or anyone you know is looking to purchase or refinance a home, waiting could be costly!

Appeals court: No tax bump

Ruling says families can transfer home to next generation without tax hike

BY BRIAN McGILLIVARY
bmcgillivary@record-eagle.com

TRAVERSE CITY -- A local woman's victory in a state appeals court will allow families to transfer a home from one generation to the next without an accompanying hike in property taxes.

The appellate court ruled in a unanimous opinion released Wednesday that Traverse City improperly lifted the taxable assessed value on Terrie Taylor's bayfront home on Peninsula Drive.

"It's huge," said Robert Parker, Taylor's attorney. "This is going to change a lot of things about estate planning, if it stands."

City Attorney Karrie Zeits called the court's ruling "overly broad ... and potentially disastrous." She expects the city will appeal.

An almost identical case decided in December, Klooster vs. Charlevoix, dictated its decision in Taylor, the court said.

Taylor's father listed her as a joint tenant on the property deed about a month before his death in 2005. The following year the city boosted the assessment and increased Taylor's taxes by about $4,000 annually.

The court ruled ownership did not change hands because of the joint tenancy, and the taxable value should have remained capped.

State law limits increases in a property's taxable value to the rate of inflation. When the property is sold or transferred, even in family trusts popular among estate planners, it becomes uncapped. The usually higher assessed value then becomes the taxable value used for tax bills.

Taylor's taxable value jumped almost $100,000 when the city assessor uncapped it. Under the court ruling the 2009 taxable value will drop from $293,579 to about $191,000 and the city will owe her more than $16,000 in back taxes, interest and attorney fees.

Charlevoix also appealed in the Klooster case, and Parker said if the ruling holds, he expects joint estate planners to move homes out of trusts and into joint tenancy to avoid taxes.

Zeits said the court created a new rule that goes beyond family transactions. "Anyone could structure a transaction to fall within the court's new parameters, and potentially we could never have a property that becomes uncapped," Zeits said.

Taken to its limits, joint tenancy literally could last one minute among buyer and seller, Zeits said.

Parker said it's possible the ruling could be used to disguise property sales, but said those weren't the facts in the Klooster and Taylor cases.

"I'm not sure that would really work," he said.

City assessor Debra Chavez said the decision will have a negative financial impact on city, county, and school tax revenues, but the situation would be considerably worse under Zeits' theory.

"I believe it would pretty much bring government to its knees. There would be no way local governments could survive," Chavez said. "The legislature knew government can't live on the rate of inflation alone, and that's why they put uncapping in there."