HousingWatch

Gulf 'Spillionaires' Target Real Estate Market

Katie McCaskey — 2010-08-06T16:33:00 00:00

"Spillionaire" is a term coined during the Exxon Valdez spill in 1989 to describe those who make bank after an oil-related environmental disaster. Corporations, small businesses and individuals can profit when they seize opportunity from crisis. That's capitalism.

So it's no surprise that spillionaires are at the ready to profit from oil-drenched real estate on the Gulf of Mexico coast. Here are some ways some might be getting their piece of the action -- and why it's often beneficial for the rest of us.

While spillionaires get a lot of negative play in the media, they're actually a powerful component of a much larger, and largely invisible economic sector -- frequently working for good. This sector is described as the "restoration economy" by author and consultant Storm Cunningham.

"Spillionaires and anyone else who profit from disasters are like any other category of businesses or professionals: There are good ones and bad ones," says Cunningham. "Good ones provide good restoration value for the money, and bad ones take advantage of political connections to get no-bid (or rigged) contracts that allow them to do as little as possible for as much as possible."

Home Cleanup

The oil spill can damage real estate in multiple ways. Consider the damage an oil spill has on indoor air quality. As the ocean oil breaks down, it can become airborne and may start entering homes and businesses via air conditioning and heating systems.

"There's a potential for health problems for people exposed to bad indoor air," says Steve Levine, president and CEO of AtmosAir Solutions in Fairfield, Conn.

The Environmental Protection Agency has been testing air quality along the coastline for volatile organic compounds like hydrogen sulfide, benzene and naphthalene which, when airborne, can cause odors and symptoms such as headaches, dizziness, nausea, eye irritation and respiratory issues. Long-term exposure can cause cancer and damage the nervous system.

"A lot of time and coverage has been rightly spent on the BP spill and how it's devastated the Gulf Coast environment and the animals that live there. But the bad air problem may be leaking into area home and offices making a terrible situation even worse for human health," says Levine.

Cleaner air quality after an oil spill sounds like a fair, and beneficial, way to profit.

Home Purchases

When home values drop, it's a great time to invest -- particularly if you believe that the values will eventually return or cash flow can be produced immediately. Investors of all kinds have noticed the significant price drops in the Gulf area. Some estimates predict that homeowners may see drops of $56,000 or more in home values. Ka-ching!

Again, the results of this spillionaire-ish move can be mixed. "If people are fixing and flipping abandoned/tax auction/foreclosed houses, I can't see anything wrong with that," says Cunningham. "It's putting the housing stock back into salable condition. The real problem is speculators who buy cheap properties and then sit on them, passively waiting for revitalization to raise the value of the property. They help retard the very revitalization they are hoping for."

Community Cleanup

"[F]or a community to achieve comprehensive revitalization," says Cunningham, "they need to make a focused shift to rebuilding their economy by renewing their natural, built and socioeconomic assets. They need to do that in an integrated manner, for efficiency and synergies. And, they need to do it in a way that effectively engages all stakeholders, for social justice."

This critical community work will need the coordinated efforts of volunteers, organizations and for-profit businesses.

Cunningham is among them. "On Oct. 1, my firm will be introducing Revitalization Forum, the world's first web tool to help communities and regions achieve [comprehensive renewal]. If BP sponsored subscriptions to Revitalization Forum for all communities affected by the spill," he claims, "it would cost next to nothing (by spill cleanup standards), but would do more to help achieve rapid, resilient renewal (and goodwill!) than any other investment they could make."

Who Wants to Be a Spillionaire?

You, too can "cash in" -- in a way that might just help reduce the magnitude of damage caused by the next oil spill.

The Wendy Schmidt Oil Cleanup X Challenge just launched. It's named for the wife of Google chairman Eric Schmidt, who donated the grand prize: $1.4 million to the person or team with the best oil-spill cleanup idea. Wendy Schmidt said, "We need to come up with better ways to respond quickly and to minimize the harm we are causing to marine life, coastal wetlands and beaches, and to our livelihoods."

After all, isn't making the first spillion the hardest?

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Gulf Coast Homes Expected to Lose $56K in Value on Average

Katie McCaskey — 2010-08-02T17:15:00 00:00

Filed under: News, Cities, Economy

The unprecedented BP oil spill disaster just got worse, thanks to the estimated $56,000 drop in home value that every homeowner on the Gulf Coast could experience. As reported in Bloomberg BusinessWeek, the estimate from CoreLogic could seriously impact home values for residents of Gulfport, Miss., Mobile, Ala., Pensacola, Fla. and other communities in the Gulf region for years.

More than 600,000 properties -- from Alabama to Florida's Atlantic Coast -- may be affected by the BP oil spill. The counties with the most severe damage -- Harrison, Miss., Mobile, Ala. and Escambia, Fla. -- have approximately 71,000 homes with greatly diminished value.

BP is reimbursing homeowners for property damage under the Oil Pollution Act of 1990. This framework for compensation includes property losses. Home value reimbursements will be made on a case-by-case basis by Kenneth Feinberg, the Washington attorney tapped by BP and the Obama administration.
The severity of the property-value destruction may rest on the potential for lingering doubts about the Gulf's ability to recover, environmentally and economically, from the oil spill. Oil damage is still evident 20 years after the disastrous Exxon Valdez spill in Alaska's Prince William Sound, reports MSNBC.

The drop in Gulf property values could wipe out the premium that some homeowners paid for oceanfront views. Equally disturbing, the spill's catastrophic damage may affect future buyers' perceptions of the area and its long-term investment potential.

Avila Beach, Calif., might offer a glimpse into the time and money necessary for the recovery of property values, though it's one small town affected by a comparatively small oil spill. Avila Beach suffered an underground oil spill 10 years ago as a result of leaking pipes, tanks, and underground oil transported by Unocal. Nearly three city blocks were razed in order to clean the contamination. Thanks to massive money and upgrades, the town is experiencing an economic regrowth. But, Avila Beach is still trying to rebuild its economy outside of the tourist season, reports the San Luis Obispo Tribune.

Attracting new residents and tourists is key to maintaining property values, particularly in beachfront communities.

New Orleans resident Paul Poupart isn't very optimistic about homeowners' recovering their losses, and may echo sentiments of those in this situation: "The people who lose out will probably have to eat it and smile because BP will pull out and disappear paying out as little as possible. They can't look to the Feds to help them out. They are inefficient and don't really care. We learned this from Katrina."

More on AOL Real Estate:
Find out how to calculate mortgage payments.
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Find foreclosures in your area.

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Want to learn more about home buying and home finance? If so, you won't want to miss
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"What Works Now: Smart Moves When Buying a Home,"
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Watch it now on AOL Real Estate.

Seller Financing Comes Back

Katie McCaskey — 2010-07-22T15:51:00 00:00

Filed under: News, Economy

Sellers once again might want to consider "owner financing" as a method to get that house sold -- and reap some tax breaks, too.

Owner financing (also known as "seller financing," "taking back the note," or "an installment sale") is estimated to be used in 10 percent to 15 percent of today's home sales. The term describes a legal transaction in which the buyer obtains financing to purchase a home through the seller, instead of through traditional banks, credit unions or other lending institutions. Essentially, the buyer makes payments directly to the seller.

Buyer and seller agree on a purchase price, down payment, and regular monthly payments to the seller. Payments are spread over time, like an installment plan. This spreads the seller's taxes due on capital gains over time. Sellers are taxed only as principal is received.

Could seller financing work for you?
Financial planner Richard Schank with PTS Brokerage in Mount Laurel, N.J., provides an example for the website Investors.com.

"To keep the numbers simple, say a tract of raw land was purchased two years ago for $100,000 and sold in 2010 for $200,000 -- with the seller taking back a note for $100,000," he said. "The total gain is $100,000. But the seller only recognizes the gain as dollars are collected, based on the gross profit percentage. In this case ... the gross profit percentage is 50 percent, and [so] 50 percent of every dollar collected is taxable."

Let's say the seller collects $100,000 from the buyer upfront. (These amounts are negotiable, and, the buyer may combine traditional funding with owner financing to produce the agreed amount.) The purchaser still owes the seller $100,000. Of this, just 50 percent, or $50,000, is immediately taxable. The rest is taxed as the principal is received.

Who should consider seller financing? Homeowners who are mortgage-free and anticipating a gain of $200,000 or more ($500,000 for married couples filing a joint return) should certainly consider this as an option to spread taxes over time. Owner financing may also be done if you have a mortgage, or if you anticipate fewer gains. Just be sure this isn't in violation of your original mortgage agreement with the bank. You are still responsible for this mortgage until it is fully paid, even after the house is sold using owner financing.

Owner financing is somewhat uncommon for a few reasons. First, most people have mortgages. They need to sell their home outright to repay their existing mortgage or access money for purchasing or upgrading their new home. So, most sellers prefer all their money up front. The other reason owner financing isn't common is that older sellers might not think they will live long enough to collect all the payments. But for a certain segment of sellers, seller financing is an excellent tool for raising interest in your property.

Realtors and bankers aren't rushing to let you know that you can arrange owner financing, another reason most people have not heard of the option. Check with your lawyer and tax professional, and refer to IRS Form 6252 for more details.

More on AOL Real Estate:
Find out how to calculate mortgage payments.
Find homes for sale in your area.
Find foreclosures in your area.
Get property tax help from our experts.

Selling Your Home on Craigslist: Trickier Than You Think

Katie McCaskey — 2010-07-16T13:00:00 00:00

Filed under: News, Economy

Craigslist's free classifieds are familiar to everyone from real estate agents to average homeowners trying to sell a home. The site covers 700 cities worldwide and is used by 50 million people per month. More than a billion real estate ads have been posted since the site's founding in 1995.

But do you know how to maximize your Craigslist ad for the best results?

Here are some "best practices" to follow when posting a home for sale on Craigslist. These tips apply to brokers and FSBO sellers alike:

Watch What You Say

Craigslist is policed by visitors to the site. If you post a real estate ad that looks fishy it will be flagged. For example, don't promise a beachfront view for real estate in Kansas. Not only is it fraudulent, but users will flag it and it will be removed.

Use Correct Categories

Founder Craig Newmark recently told Inman News that the real estate section "does seem to get policed fairly well. In New York, I have agents quite frequently sending us e-mail about other agents' inappropriate acts."

A common tactic is for real estate agents to list their homes in the "For Sale by Owner" category. Not cool. These agents have their listings removed.

Who Are You?

For best results agents should disclose who they are and their real estate agency. As in real life most people want to know who they're dealing with and generally respond more favorably if you explain who you are first. Individuals selling a home may choose to omit this information for privacy concerns on the listing but are encouraged to respond with contact information.

More Real Estate Stories

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America's Best Cities for Young Professionals on Forbes.com

America's Cleanest Cities on Forbes.com

Minimize Hype

!!!!FABULOUS DEAL!!!! ~~~One-of-a-kind!!~~~ DREAM HOME!
Your home may be all of these things. But too much marketing hype will be ignored. Skip the +++ keyboard art +++ and DON'T TYPE IT ALL IN CAPS, too. You want to sell, not yell.

Avoid Keyword Spamming

It's old news and it doesn't work.

Don't Post Too Frequently

Many people try to land at the top of the real estate list by posting their listing very frequently. This just serves to annoy potential buyers. Moreover, frequent listing is pointless since the results are updated every fifteen minutes and any "top of list" slot will be lost. Anything more than once every 48 hours is considered too frequent.

Treat People Like You'd Want to Be Treated

It's a simple rule, but the most effective "best practice" when it comes to selling real estate on Craigslist.

More on AOL Real Estate:
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Pricing Your Home to Sell, Part 2

Katie McCaskey — 2010-07-07T11:00:00 00:00

Filed under: News, Economy

Incorrectly pricing your home won't make it any easier to sell in this market. We recently explored some common home pricing mistakes.

Now we'll look at a few more mistakes sellers make pricing their home and how you can avoid disappointment:

How Much 'They' Got for an Identical Home Doesn't Matter

Did the homebuilder who built your home build several hundred just like it? Don't make the mistake of pricing yours just as Mr. and Mrs. Jones did -- particularly if the Joneses live in another area of the city or state. Local pressures on the market will adjust the price of your home above or below the price of theirs. It's better to price yours against local homes with similar features and amenities than price exactly as an identical home in another market.

Price Your (New) Agent Sets Doesn't Matter

Good Realtors have on-the-ground expertise and, obviously, will want to sell your home for the highest possible price. However, even great Realtors aren't magicians. Expect to adjust your price.

If you're tempted to switch to another agent because your home is unsold, a word of caution: An unscrupulous agent may tell you she can list your home for more money while knowing full well that the market won't accept the price you want. This is just a ploy to get your listing. Do you really want to upset the Realtor who has already put in time and effort selling your home?

Essential How-To Guides on AOL Real Estate

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Your 'Could've' Price from 18 Months Ago Doesn't Matter

Convinced you "could've" sold for a particular amount? Don't lament an offer you refused months ago. The market moves. If you insist on a specific price you might need to sit out from the market awhile until prices or inflation rise to meet your expectations.

Your Financial Picture Doesn't Matter

Have you set your price with one of these excuses? "I need X to move into a new house"; "I need X for this place because the mortgage is paid in full"; or simply, "I need X because I'm broke/flush with cash"? The seller doesn't care. If you've set the wrong price no amount of justification can or will affect price.

But, I Have Memories Here!

Cherish them.

So What Should I Do to Price a Home Accurately?

To set an accurate price for your home, start with the following:

Research the prices of similar homes in your hyper-local market -- your neighborhood and street. (Search here.)
Enlist the advice of a real estate professional who knows your immediate area.
Remember that you'll probably overestimate what the market will bear, even in boom times, because you're emotionally attached.
Determine if you can wait for the "right" price. Be prepared to wait out the market if you're unhappy with the price range for similar homes. Similarly, be realistic and flexible on price if you need to sell sooner than later.

More on AOL Real Estate:
Find homes for sale in your area.
Find foreclosures in your area.

Find out how to calculate mortgage payments.

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Pricing Your Home to Sell, Part 1

Katie McCaskey — 2010-07-06T11:42:00 00:00

Filed under: Economy

Home selling No. 1? Not knowing what your home is really worth and pricing it incorrectly. Here's the ugly truth: your home is not what you think it's worth. Your home is what the market determines your home is worth. It's a reality that has upset a lot of people over the past 18 months and continues to flummox many.

Consider the two numbers (your price versus the market price) like two stars in a constellation. They may appear to be close enough to depict a shape, but, in reality are light years away. Fail to recognize reality and your chance of a sale may be as realistic as wishing on a star.

In this two-part series we'll look at common pricing mistakes. Evaluate your asking price closely and see if any of these ring true:

Price You Paid Doesn't Matter

A common mistake is to assume that you always will be able to price and sell your home at a number higher than what you paid. Sadly, not true. This isn't even true if you just bought the home last month. Why? The real estate market is constantly adjusting. Numerous factors influence a property's perceived value, including but not limited to inventory, the local economy and consumer confidence.

How Much You Spent on Upgrades Doesn't Matter

Gone are the days of a "dollar in, a dollar or more out" when it comes to upgrades. In fact, in many cases the cost of upgrades may not equal instant equity when you sell. The cost of your upgrades may only serve one purpose: as an "entrance fee" to compete with other houses with similar upgrades.

This can be sobering for anyone who has spent thousands of dollars and expected to see that money reflected in the final sales price. Kitchens are a great example. A "new" kitchen is one that's been remodeled in the last six months. A "new" kitchen completed a year or more ago is actually considered an "updated" kitchen. That's a big difference in perception and in ultimate value.

Essential How-To Guides on AOL Real Estate

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Selling a Home

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How Much You Spent on Repairs Doesn't Matter

The more "realistic" homeowners may point to practical improvements as a justification for a certain asking price. Sorry, folks. A new roof may have cost you a lot of money, but on the other hand, do you think you could sell with an old, leaky roof? Some repairs are simply necessary and therefore have little bearing on price except for the "peace of mind" it may instill in a potential buyer.

The one exception to this rule? So-called "green repairs." Repairs and upgrades that will conserve resources (water, gas, electricity, etc.) can differentiate your home in the market. If you've made these upgrades or repairs be sure to highlight them -- they could be worth gold.

Coming in Part 2: More pricing mistakes sellers commonly make and how these can be very detrimental in this market.

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See homes for sale in your area.
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See how to calculate mortgage payments.

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Want to learn more about home buying and home finance? If so, you won't want to miss
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Trading Down No Longer Safe Retirement Strategy

Katie McCaskey — 2010-06-16T14:30:00 00:00

Filed under: News, Economy

Once upon a time a majority of people followed this seemingly fiscally sound path: Buy a home, spend your working years paying it off, and then sell it so you can trade down once the kids left. Magically, all that built-up equity could fund your retirement.

What a fairy tale!

Today the baby boomers are discovering that selling their home isn't the golden ticket it once was, reports the Wall Street Journal. The Journal references a Harvard study that indicates that "mobility rates among seniors have posted the sharpest drop." When the costs of moving and selling a home at a loss are evaluated, it makes financial sense for some seniors to stay put. Others find themselves underwater due to the housing market collapse or natural disaster.

What happens to the retirement wishes of all those folks who anticipated heavy paydays with the sale of their home? And what can younger generations learn from this?
Seniors may still benefit from selling their home at a reduced price. First, from the liquidity of cash from the sale. The cash might allow them to postpone withdrawing money from an IRA or other nestegg. It may also allow delaying Social Security payments. If the new, smaller space is selected carefully they may also see the anticipated reduction in cost-of-living expenses. But not always, if the new place has high condo fees or other expenses.

Seniors also might benefit from renting, following a not-as-big-as-anticipated home sale. Renting allows the luxury of trying out a few locations before making a decision on a new purchase (if at all). It doesn't come with the tax writeoff of homeownership, but you can move in a pinch.

Boomers unwilling to sell at a loss could lead to an oversupply of larger homes, thus bringing prices down even further.

Boomers who want to "trade down" for a smaller place also have the disadvantage of fewer potential buyers in the market for their present homes. Gen X is suffering from wage stagnation and most Gen Y adults don't anticipate owning a home until their 30s.

Younger generations can learn from this market reality by realizing that, for a variety of factors, homeownership may not be the "everything investment" it seemed to earlier generations. Younger people should keep in mind what makes a "great location" and consider owning a smaller home than their parents, if at all.

At the very least, the current housing market is a good reminder that living simply and within your means, while paying down debt, will be to your advantage later.

Generation Y: Dragging Down the Housing Market?

Katie McCaskey — 2010-06-08T18:00:00 00:00

Filed under: News, Economy

Attention, Generation Y! You're screwing everything up -- again! Apparently, there are relatively few members of Gen Y, those born from 1977 to 1989, who are homeowners -- still.

First came the accusations that young adults -- those self-esteem-inflated, coddled slackers -- were a contributing factor to the housing bubble. Why? Because Gen Y was too busy prioritizing trips to Europe or avoiding "real life" by going to grad school than "doing the right thing": getting a job, and paying the mortgage. As for those rare Gen Y rascals with homes -- let's point to them as morally deficient examples of people who walk away from mortgages!

Let's not stop there, though. Let's blame all those bratty Gen Y members who can't get it together enough to even have a mortgage -- yes, you, dear renter! Don't you realize that if you're not buying an entry-level house, you are screwing it up for everyone else? If you're not buying we (the older folks) can't sell our homes and move into larger (or smaller) ones?

Message from Gen Y: Well, old-timers, we have taken two seconds to consider home ownership. What we've concluded is that, best case, it will take the majority of us 10 years or more to buy a house (if we ever decide to buy!) ... and, our preferences are shaping both the rental market and the buying market, so ... get used to it.

If you care to listen, here's how:
First, get a handle on our numbers. Today, Gen Y is close to outpacing baby boomers as the largest demographic in the country. Gen Y members are 74.8 million strong and the infamous boomers are holding at 74.6 million.

It also helps to understand that typical wages for Gen Y are a fraction of what the average baby boomer made relative to cost of living. A typical baby boomer making $48,000 a year could buy a house and support a family. By contrast, a typical member of Gen Y would need to make $148,000 a year to afford an entry-level home in most cities.

Consequently, most members of Gen Y won't have the opportunity to purchase a first home until they are in their mid-30s. This puts real estate spending on hold for individuals as well as the market at large.

This post in the San Francisco Business Times points out that Gen Y's tastes aren't so different in that, generally speaking, we enjoy walk-in closets, close proximity to transit, and retail amenities near our rentals. Presumably, we'd look for similar things in a house, too.

The problem? There are fewer rental and real estate locations available that offer these amenities than demand warrants. That's because development has centered on the suburbs since the boomers were children. Members of Gen Y want denser, "downtown" living options -- and the market is hot to try and create them.

But even with more desirable locations on the market, would it even matter to most of us? Gen Y views jobs as fleeting -- we don't have any delusions about getting gold watches for a lifetime at the same company. So, more members of Gen Y choose where we live based on lifestyle versus relocating for a specific job or company headquarters.

Renting, therefore, looks pretty good to us. Boomers, you might want to try selling your homes to a member of Gen X, instead.

U.S. Soldier Evicted by Homeowners Association While Serving in Iraq

Katie McCaskey — 2010-06-07T12:10:00 00:00

Filed under: News, Economy

Capt. Michael Clauer of Frisco, Texas was deployed and serving his country in Iraq when the Heritage Lakes Homeowners Association decided to sell his family's home.

The story is an especially surprising one considering that the HOA foreclosed on the home owned by Capt. Clauer, who serves in the Army Reserve, and his wife May because their monthly association dues of $800 were late, and that the company that manages the HOA proceeded to sell the house without notifying them.

Even more shockingly, Select Management, which oversees the Heritage Lakes housing development, sold the Clauers' home to a bidder for just $3,500. That purchaser, in turn, flipped it to another owner. And here's the clincher: The Clauers owned their $300,000 home free and clear.

May Clauer told HousingWatch, "We think our case demonstrates how much power HOAs have in Texas. HOAs can take away your home without a court order, which is more power than our local government has. We did not know HOAs could do that."
Texas law permits HOAs to foreclose on homes without a court order, regardless of how much money is owed.

The Clauers have reached an agreement to temporarily stay in the home, but have no idea what happened to the proceeds from the sale of their house.

"At first I didn't believe it. I didn't understand how someone can take your house and not give you anything for it," Capt. Clauer told Mother Jones.

Indeed, it sounds impossible, but here's what happened: While Capt. Clauer was serving in Iraq, his wife May fell into a deep depression brought on by worry about her husband's safety and the stress of caring for their two children. She stopped opening mail -- including the notifications about the HOA fees and, later, about the HOA's decision to foreclose and sell the house at auction.

May Clauer claims that no one called her or came to her door to speak with her directly, even though others had been notified in person about the consequences of late dues. The HOA claims not to have known Capt. Clauer was serving in the military at the time. The Clauers maintain that it was common knowledge in the neighborhood and are seeking to reverse the foreclosure and declare it "null and void."

But even that won't bring back their home. Under Texas law there is no way for the Clauers to get their home back. However, there might be hope under the federal Servicemembers Civil Relief Act. The SCRA protects members of the military from financial problems that occur while they are fighting for our country. However, it's a law that frequently is broken.

"SCRA complaints are definitely one of the top issues that we see," said Lt. Janelle Kuroda, a Navy lawyer and expert on the SCRA to local news reporters at WFAA-TV. She says that this issue affects all branches of the military.

More people in Texas seem to be agreeing that it's time to regulate homeowner associations to protect property rights. State Sen. Royce West (D-Dallas) is hoping to pass legislation to prevent HOAs from having such control over homeowners in their neighborhood.

"We'd like for everyone to let their representatives know that the power of the HOAs needs to be curtailed," May Clauer says. "We haven't heard anything from the defendants in our lawsuit and the trial will be in the early part of next year."

Meanwhile, if you'd like to help Capt. Clauer and his family fight for their house and change HOA laws in Texas, send your donation (made out to the Clauer Legal Defense Fund) to:

Clauer Legal Defense Fund

c/o Plains Capital Bank

1629 Hebron Parkway West

Carrollton, TX 75010

"We are overwhelmed with all the support we have received from the public.," says May Clauer. "We sincerely hope and pray that we will prevail in this lawsuit as well as change the HOA laws here in Texas."

New Ohio Law Requires Meth Lab Disclosure to New Owners

Katie McCaskey — 2010-06-02T11:00:00 00:00

Filed under: News, Cities

Turns out crystal meth, a synthetic illegal drug that is extremely destructive to humans, is almost as bad for home values. And the chances that meth has been produced in your dream house are greater than you might think.

It's normally hard to detect, but meth residue can produce highly toxic fumes. So how will you know if tweakers used your future home as an illegal drug lab?

In Ohio, a new law requires owners to disclose to their real estate agents whether the harsh synthetic street drug has ever been manufactured in their home before putting it up for sale. Motor vehicles are also covered in the bill. The Ohio House unanimously passed the Methamphetamine Awareness and Notification Act on May 20. It is awaiting a vote from the Ohio Senate.

One glance at public awareness campaigns such as the sensationalist Faces of Meth will give you a good sense of the dangers associated with the drug. But it's unclear whether a law meant to restrict sales of meth-tainted properties will be effective, or whether it is even necessary.
The process of cooking meth releases highly toxic fumes that can linger in a home for years.

Meth is typically made with over-the-counter cold and asthma medications containing ephedrine or pseudoephedrine, red phosphorous and hydrochloric acid. Other nasty fillers include drain cleaner, battery acid, lye, lantern fuel and antifreeze. The ingredients are "cooked" to produce powder or crystals.

The Methamphetamine Awareness and Notification Act would also create a public online database of meth-tainted properties. This may be why the bill, introduced three years ago, has languished.

To begin with, it's not clear how long a property would be included in this database, or what could be done to remove it. More questions linger: Who would dictate the cleaning standards? Who would shoulder the legal risk of giving a property a clean bill of health if it is later discovered to still be toxic? And would a listed "meth house" all but destroy any potential for rental income or resale?

If a homeowner's property was mistakenly listed, it could be devastating to the home's value.

The Methamphetamine Awareness and Notification Act now moves to the Ohio Senate. It is being supported by local law enforcement, as well as local Realtors. The disclosure notices would join a host of other lengthy health disclosures including lead-based paint, radon, and other potential environmental exposure.

But it's worth nothing that meth production is just one criminal activity that can wreck a home. Cannabis production can also trash homes, thanks to elevated moisture levels and general abuse, as was the case in a recent story out of England.

Ideally, a thorough home inspection should turn up any serious air-quality issues. And specially trained home cleaning services can often rid a home of any toxic substances and their effects.

How to Reduce Noise Pollution in Your Yard

Katie McCaskey — 2010-05-27T12:00:00 00:00

Filed under: Design

As suburban sprawl continues and traffic demands increase everywhere, more homeowners are faced with an annoying byproduct: noise.

But there are numerous ways to fight noise. We'll start with your yard. Several "green" solutions exist that, when combined, can reduce the perception of noise.

Here are some things you can do.
Sound moves in waves, so think of them as ocean waves crashing against your home. And like water, sound will take the easiest path. So your first objective is to physically block as much as possible. The most obvious way is a tall, tightly-made fence with few gaps. Regulations set by your city or homeowners association will determine how tall you can make it or if it can enclose your property.

Fencing, however, is just one tool. Others are plants and land berms.

First, the foundation: land berms. A berm is a wall or mound of dirt that changes the contour of your yard. One "green" use of berms is to slow water runoff and reduce water pollution. From a noise reduction perspective, a berm functions as a natural contour to physically block noise and provide a firm foundation for a fence.

For example, if your homeowners association only allows fences 5 feet tall, you could place your regulation-size fence on top of your berm. This would raise your fence and block more noise. (But check to see if you could do this in your area.)

Berms are built by moving existing soil in your yard, or by bringing in additional topsoil. Here's the formula for how many cubic yards of soil you'll need. You also can build your own berm with compost, by piling yard and home waste (leaves, grass clippings, cardboard, shredded paper) and other biodegradable material -- not meats or fats -- and covering it with a thick layer of mulch.

This construction method will take considerably more time to create, based on the size required. Your berm also might settle over time as the compost decomposes. But the advantage to the build-your-own process is the reduced cost and the fact that it will enhance overall soil fertility. Either way, the berm will still block noise.

Next, plant both sides of the berm and fence.

Ideally, select a range of plants that will fill in densely and require minimal care. Landscape with a mix of heights -- but similar water and sun requirements -- for best results. A mixture of evergreen plants such as arborvitaes, spruces, pines, and hollies will offer a year-round barrier.

Trees can help muffle noise, too. First, trees will visually block the source of the noise. Psychologically, this is half the battle.

Rustling leaves also provide white noise to mask other sounds. Consider planting trees with edible fruits (apples, peaches, etc.) or nuts (chestnuts, hazelnuts) as an additional benefit to enjoy. Or plant flowering trees helpful to wildlife, available at The Arbor Day Foundation. Poplar trees are indeed "popular" due to their fast growth, but will die in about 20 years.

Fountains and other man-made water features create white noise, too.

Another approach to noise reduction is to button up your house as much as possible. Start with the windows for best noise-reducing results.

A combination of indoor and outdoor measures will significantly reduce the amount of noise you experience.

Prize Pigs Buy Teen a House

Katie McCaskey — 2010-05-21T11:00:00 00:00

Filed under: News, Economy

Three piggies went to market, and one piggy's owner bought a home. Not bad for an 18-year-old! Indeed, the homespun tale of Lindsay Binegar provides a good lesson for all would-be home buyers.

First of all, it required a lot more than just three pigs to save up $40,000. Yet that's how much cash Lindsay Binegar of Greenfield, Ohio managed to save from showing and selling pigs at 4-H competitions and county fairs. Starting at age 4, she simply saved, saved, and saved.

Amazingly, Lindsay used all her accumulated funds to purchase an investment property: a four-bedroom, two-bath, two-car-garage home -- in cash.

Did you just squeal like a pig? You're not alone. Since news of this broke Monday people have been "tossing the pigskin," so to speak, in a series of armchair-quarterback sessions about Miss Binegar's purchase.

So before you add your own thoughts, here's how Lindsay did it and what you can learn from it:
First, and obviously, Lindsay was methodical enough to bank nearly everything she ever earned. (Attention, future farmers: Did you know you could make $15,540 with a prize pig?)

Was the decision to save simple? Yes. Easy? Well ... obviously it's a lot easier to save when your parents are paying your overhead. But no doubt she demonstrated commitment to a financial goal and a "pay yourself first" attitude.

Lindsay originally saved the money to pay for college. But her parents said they would pay for her education if she commuted to school to reduce the cost. Anyone saddled with student loans can appreciate that.

So Lindsay used her funds to purchase an investment property at extreme discount at auction. According to other Greenfield, Ohio listings at AOL Real Estate, she got an entire house for what some pay for foreclosed, empty land. Here she got lucky -- her father owns the auction house.

Once purchased, Lindsay enhanced her investment by painting the interior of the two-story frame house and adding carpeting.

She rents it to her great aunt and uncle. After maintenance expenses, repairs and taxes, she saves the remaining from the $450 per month she collects in rent. She plans to use this money to buy her own house when she marries next year.

Is it a wise financial move? Well, detractors remind us that she's spent her entire nest egg on one investment.

Haters! Her house is paid off, so it will produce cash every month it is rented. Or, the house will provide a place for her to live without the cost of rent or a mortgage. Not bad.

Binegar, now 19, is a freshman at Ohio University's Chillicothe campus. No need to study finance -- this girl already knows how to bring home the bacon!

See homes for sale in Ohio and elsewhere at AOL Real Estate.

Design by Avatar: Redecorate or Sell Your Home in 3-D

Katie McCaskey — 2010-05-18T15:40:00 00:00

Filed under: Design

Until recently homeowners had two choices if they wanted to visualize changes to their home in 3-D: make use of their imagination or hire the services of a professional.

But now there exists a wide range of web-based and mobile tools to help visualize your home in three dimensions. Don't make the mistake to think this is all about rearranging furniture, either. Three-dimensional representation of your home can help sell it, too.

"Floor plans are an absolutely critical part of selling a home in the internet age." says Joseph Himali, founder of Best Address, a brokerage firm specializing in luxury real estate in the Washington, D.C. region. "Interactive floor plans are the latest level of convenience. They help buyers imagine themselves in the property and that helps them make the 'buying decision.'"

I took two web-based applications and one mobile app for a design test drive: Homestyler.com, Floorplanner.com, and Home 3D.
How difficult would it be to get an accurate representation? Could any of the software convincingly portray my house? Finally, could any of these cheap-to-free 3-D floor plans I create be of any value for a regular homeowner like myself?

I set out with a basic goal: to create a 3-D floor plan showing the groundfloor of my house. It's an 1881 Victorian filled with fussy, non-standardized measurements (currently in the process of restoration).

Starting with Autodesk's free, web-based Homestyler, I began drawing the ground floor as one space. In hindsight it probably would've been better to draw the space room by room. Homestyler offers a few pre-built, common room shapes and easy-add room extensions. Even so, it was quickly apparent that the wall-drawing tools weren't as intuitive once I veered from the standard path.

For example, in my house there is a short, curved hallway between the library and dining room. It exists in real life, but, I couldn't convince the software it was possible to build. Homestyler's preset rules are very handy so that you don't add windows, walls or doors where they can't be built. But in my scenario these limitations were frustrating.

By contrast, drawing the same floor plan using the site Floorplanner was a cinch. I could easily snap openings into walls and slide them into position to reflect a non-standard hallway.

In the next step, you add stairwells, and egresses such as windows and doors. Homestyler offers a range of very specific doors and windows but nothing that worked for my period house. Floorplanner offers even fewer door and window options, but it gives the user greater flexibility to add stairs.

The real fun begins with both web applications once the 2-D floor plan is drawn. You can click to view it in 3-D and then start experimenting with furniture, decor, and landscaping.

Homestyler makes it easy to visualize specific paint colors or appliances, thanks to its partnerships with companies such as Sherwin-Williams and Kohler. Here, Homestyler's rules are very helpful. A stove may fit in one direction in your kitchen but not another, and yes, Homestyler will tell you. Unfortunately, you're limited to a couple of brand-name items with few generic placeholders. For example, where were the generic built-ins to represent the library?

Floorplanner, on the other hand, offers far more "generic" features, and even stand-in people. Both allow you to get a sense of what your room might feel like once completed, but in exchange you give up some accuracy.

Landscaping is also key to a property's curb appeal, and experimenting online sure beats the sweat of moving plants around in real life. Here, Floorplanner is the clear choice. They offer a range of very specific plants and structures to add to your landscape. Strangely, Homestyler offers a very limited landscape palette: a bush, a fir tree, and a soybean plant. (Soybeans?)

Eager to replicate my experiences with the Homestyler and Floorplanner (both free), I paid for a mobile 3-D app called Home 3D.

I had high hopes that a mobile version would mean that I could easily access my floor plan while shopping for home decor. Unfortunately, on this release of Home 3D it isn't particularly easy to build, customize or navigate floor plans. I think it could easily rival the other web apps if the app is developed to include on-the-fly product-scanning. (A future where I could scan an item in a shop and see it instantly in the 3-D floor plan would be killer!)

Verdict?

Yes, 3-D floor plans can certainly help the average person visualize changes to their home. Those willing to invest the time might even be able to make a representation suitable for inclusion on a real-estate website. Floorplanner also sells a "pro" version which allows potential home buyers to take virtual 3-D tours of your layouts.

Overall I found Floorplanner to offer the greatest flexibility and the easiest to use. If it's important that your 3-D floor plan represents specific decor choices or you want greater accuracy, Homestyler is your friend.

If limited to showcasing products from partners, Homesyler would be more powerful by partnering with period-detail design companies. Homestyler also makes it easy to share your plan online with others, such as mine below.

Both Homestyler and Floorplanner are free options that will give you pretty decent accuracy. Avoid the $3.99 Home 3D app, though, which is clunky to use and not particularly helpful at this stage.

Christie Brinkley's Towering $30M Mansion for Sale

Katie McCaskey — 2010-03-12T15:05:00 00:00

Filed under: News, Cities

Bridgehampton's favorite uptown girl, former supermodel Christie Brinkley, is listing her largest real estate asset, Tower Hill, for $30 million.

The 11-bedroom, 9-bathroom mansion on Brick Kiln Road was built in 1898. It sits atop 20 acres of immaculate, beachside property she once shared with her ex-husband, architect Peter Cook. The farmhouse-style, stone foundation Victorian sits 200 feet above sea level.

Might Brinkley's "Tower Hill" have originally been named after a popular song?
Originally the property was named "Dulce Domum" ("Sweetly at Home"), possibly after a popular 1876 song. Brinkley's home was extensively restored and renovated in 1998 (perhaps one of the few perks to her disastrous marriage to the architect). Features include beautifully landscaped multilevel stone terraces and a four-car heated garage. The entirely organic lawn features walking paths, gardens, a tennis court, a basketball court and a playground.

Tower Hill is comprised of three parcels. In addition to the main house, there is a sizable guest house with a greenhouse conservatory overlooking a botanical nursery and a palatial pool. The other structure is a barn/artist studio with living quarters and gym. Brinkley says of the studio, "When I go into my art studio to paint, I lose all sense of time. If I could stay in there for days and nights on end, I would."

The property's 50-foot observation tower provides sweeping views of farm fields and the ocean.

The tower also hints at the interior design motif inside. Brinkley is especially fond of the Eiffel Tower, saying "It's the symbol of romance." Several Eiffel Tower models fill the home, along with an eclectic collection of dried hydrangeas, paper lanterns and items collected since the 1970s.

InStyle magazine recently featured an exclusive portrait of the stunning home, its owner and Brinkley's Labradoodle dog named Maple Sugar.

People magazine reports Brinkley is downsizing to an $11 million dollar waterfront home in North Haven.

Brinkley's home is listed with Corcoran.

J.R. Shot, Home Price Won't Flatline

Katie McCaskey — 2010-03-11T13:50:00 00:00

Filed under: Design, News

Actor Larry Hagman -- fondly remembered for his role as J.R. in the 1980s hit "Dallas" -- has listed his Ojai, Calif., home for $9.3 million.

The Mediterranean-style home sits on Sulpher Mountain Road in Ojai, with views of the ocean, the Channel Islands and surrounding Ventura Valley. The 18,000-square-foot home has nine bedrooms, thirteen bathrooms, two half-baths, and large sliding glass walls that provide a panoramic view almost anywhere in the house. The home also features a gorgeous swimming pool, garden and a helipad.

But there's more. The home includes a subtle homage to Southfork Ranch, the beloved soap opera's compound, and is recognized for its energy use -- or rather, lack thereof.

First, there's the "Dallas"-esque twist to the reason Hagman settled in Ojai in the early 1990s. His co-star, Mary Crosby, had a home there. Crosby played Kristin Shepard, J.R.'s scheming sister-in-law who shot Hagman's character at the conclusion of the iconic show.

Hagman may have played a ruthless oil baron on "Dallas." But, blogger Julia of Hooked on Houses reveals that the actor is actually less pro-oil and more pro-green. The 43-acre estate he shares with his wife, couture fashion designer Maj, is the largest solar-powered residence in the United States. Hagman says of his home, "Let's call it heaven, because this is the closest you're ever going to get."

Here is a video produced for the listing agency, Christie's Great Estates, in which Hagman describes the savings his solar home provides. He installed solar power in 2003 and watched as his annual electric bill plummeted from $37,000 to just $13!

Hooked on Houses also noticed the slight, perhaps unintentional homage to the television series.

On the left, Hagman's home has a yellow and white striped patio awning; on the right, a screen shot of "Dallas" that shows a very similar awning that was a fixture in the Ewing family's gathering spot.

Hagman built the home in 1992. This is the first time it has ever been on the market.

The Curse of Zombie Shopping Malls

Katie McCaskey — 2010-03-04T16:00:00 00:00

Filed under: News

What happens to "zombie" commercial spaces and, in particular, those dead shopping malls? Is your local "zombie mall" the masked, serial slasher in your hometown's struggle for economic recovery?

The recession has left many desolate malls and office buildings in its wake, and this poses a potential economic crisis. If these malls and commercial properties fail, they could take down hundreds of small and medium-sized banks with them. This, in turn, may lead to reduced lending and even eviction of families from rental properties, MSNBC recently reported.

Shopping malls were particularly hard hit by the economic crisis that began in 2008, as consumers reined in their legendary spending and national chains such as Circuit City, Sharper Image, and Lillian Vernon went bust, leaving gaping vacancies at many shopping centers. Suddenly, the mall -- the temple of American consumerism -- was in trouble. Today, consumer spending is still down and commercial property values have fallen 40 percent from their peak. The landscape is littered with struggling or dead malls.

There are no government programs for underwater commercial property owners who owe more than the property is worth. Has the time come for the shopping mall to be reinvented?

For many people, the answer is yes. In fact, you might be surprised by some of the folks who have publicly rejected the mall concept.
Victor Gruen, the Los Angeles-based architect credited with building the first shopping malls, said in a 1978 speech that he swooned in horror at "the ugliness...of the land-wasting seas of parking" around most shopping malls, and the soul-killing sprawl beyond.

The recession may only hasten cultural changes already underway. Today, people have embraced online shopping and big-box discounters such as Wal-Mart. Wal-Mart models itself as a "mall" which provides an array of deeply discounted items under one roof. A full thirty percent of Americans are said to shop at Wal-Mart every week.

After decades of furious growth, no new malls have been built in the last two years. And in 2008, more than 150,000 individual mall stores closed, according to a report by CBS News Early Show. Once the anchor tenants leave or default (hello, Circuit City), smaller stores frequently suffer from significantly decreased foot traffic and eventual closure. (That's one reason why General Growth Partners, one of the nation's largest mall operators, filed for bankruptcy protection last year).

If the inventor of malls isn't too happy with the result, and shoppers are pinching pennies or buying online, what will become of the once-mighty American mall that has become a central feature of the landscape?

Some malls are simply torn down. Others are rebuilt. Some are revamped to resemble a "town square" with play areas, dining, and even apartments or condos in a compact, walkable format -- a sort of Disneyfied downtown. Others are rebuilt as strip malls with side-by-side individual stores sharing a common parking lot. Some more creative thinkers envision a future where dead malls will be remade into "water parks, wave machines, or other fascinations."

Meanwhile, the zombies lurch forward. For a glimpse of our mall-challenged future, take a look at the difficulties experienced by Chicago's "Block 37" project, which was hardly filled to capacity when it opened. Here's a video showing its multiple empty floors.

There's even a web site that tracks the decline of this cultural and economic institution: DeadMalls.com. (Click on "Features" to find one near you).

Good riddance, you might say. But a dead mall creates more than just job losses and built-environment waste. These zombies can also damage your hometown in other, less obvious ways.

Smaller banks are more vulnerable to dead mall losses since commercial real estate makes up a larger portion of their portfolios. A shopping plaza project turned disaster can wreck a small bank, bringing down every other depositor and small business with it, or curtail lending in the area.

Small banks, however, might be bolstered by the grassroots movement to do business with small institutions, rather than large mega-banks -- you know, the ones that brought on all of the trouble we're now in. (See Huffington Post's call to action as well as the website Move Your Money). More deposits could cushion the loss of a dead mall for a local bank.

Still, with the mall model heavily reliant on cars and fuel, shopping malls may soon exist as dinosaur parks of another age.

Related:
"On the Brink: Sbarro's Braces for the Great Shopping Mall Recession" [Daily Finance]
"Borders Will Axe 200 Waldenbooks Stores, 1,500 Jobs" [Daily Finance]

Are You Tweeting Your Way to Higher Premiums?

Katie McCaskey — 2010-03-03T10:31:00 00:00

Filed under: News

Are you announcing your whereabouts on Facebook, Twitter, FourSquare, or other social media platforms?

The pitfalls of too much sharing have been all too evident lately, with a rash of robberies and destructive party-crashings after the victims publicized their plans on social media sites.

Apparently, insurance companies have noticed as well. Be warned: You could be one status update away from higher home insurance premiums. (#OMG. #HigherHomeInsurance?)

At least, this is the speculation of the U.K.'s Daily Telegraph.
The Daily Telegraph quotes Darren Black, the head of home insurance at Confused.com, a site for comparing insurance rates. Black said: "I wouldn't be surprised if, as social media grow in popularity and more location-based applications come to fore, insurance providers consider these in their pricing of an individual's risk."

WalletPop reports that, while possible in theory, in practice it would be difficult to monitor individual policy holders. At least, that's what David Hilgen, a spokesperson for Chubb Group of Insurance Companies, a property and casualty insurer based in Warren, NJ, seems to think. He's quoted as saying, "We don't monitor this kind of activity. Who has the time to do that?"

Well, maybe not busy insurance companies. But an unscrupulous individual with the motive and the time might be watching your whereabouts online to pinpoint the best time to pounce.

With all the digital interconnectedness, some privacy seeking people have been moved to do something drastic: log off forever. There are sites that exist to help people commit "social network suicide" by permanently deleting all their online profiles, friends, messages and log-ins. (One site, the Web 2.0 Suicide Machine, has been dubbed "a digital Dr. Kevorkian" by TechCrunch).

But not so fast: while your profile is permanently deleted, it still lives on the great cache in the Internet sky. Lawsuits abound concerning your "right" to delete your online profiles. So, your digital "suicide" doesn't solve everything.

To protect your online privacy -- and possibly your home insurance rates -- think twice before announcing to strangers in real time where you are in real life. Even if you're just chill'n at home. You never know who's watching.

Improve Your Quality of Life in Minnesota

Katie McCaskey — 2010-02-25T13:45:00 00:00

Filed under: Design

Want to take better care of your heart and keep it healthy? Consider moving to Albert Lea, Minn. Residents decided that the best way to prevent heart disease was to pursue public policies to prevent it.

People living in this city 90 miles south of Minneapolis, became the first in the nation to sign on to the AARP/Blue Zones Vitality Project - an effort to define what steps need to be taken to increase your life's longevity. With a population that tips the scales at a 60 percent overweight or obesity rate, this health overhaul couldn't come at a better time.

Dan Buettner, the author of "The Blue Zones: Lessons for Living Longer from the People Who've Lived the Longest", is the brains behind this project. He's well aware that where we live influences how long we'll live.Here are a few of the measures taken by city officials and residents for the "town makeover" that made their homes and lifestyle more heart-healthy and how they may have raised their property values at the same time.

First, the city laid new sidewalks linking residential areas with schools and shopping centers. Space was also carved out for community gardens and a recreational path around a lake. Creating walking groups, expanding bike paths and even adding windows to the downtown-area buildings are also being considered to re-energise the city.

Next, restaurants changed their menus to offer healthier food options. Public schools reduced snacking opportunities by banning eating in the hallways and sold wreaths for fundraising instead of candy. Volunteers grouped school children into "walking school buses" to escort them to and from school on foot.

The results? Even the residents who weren't initially interested in the changes benefited. In six months participants lost 2.6 pounds and boosted their life expectancy by about 3 years. There were economic benefits, too: health care claims for city and school employees fell for the first time in a decade.

Heart disease costs Americans an estimated $403 billion dollars in 2006. Homes with healthy benefits such as "walkability" have been shown to be worth more on the market. They may even retain their value during the recession.

The lessons learned in Albert Lea, Minnesota could be implemented in public policy across the country if the political will exists. In fact, one team of filmmakers is raising money to make a documentary about re-inventing neighborhoods and cities with health as a focus.

Check the available home listings in Albert Lea - your next home, and improved health, could be a heartbeat away.

Buy This Michigan Bungalow for a Buck

Katie McCaskey — 2010-02-23T17:45:00 00:00

Filed under: Design, News

A single dollar can buy you this two-story, four bedroom 1926 Arts and Crafts-styled bungalow in Michigan. There's just one catch: it must be moved from its Detroit suburb to make room for a local park.

Moving this one-buck, fixer-upper is estimated to cost about $20,000. Add in renovations on the 2,110 square foot home, plus the cost of the land on which to place it, and it will likely cost more than last year's purchase price of $76,415..

If no one buys this Arts and Crafts-style home for $1 by May 31, 2010, it will be demolished. So what factors do you need to consider when uprooting and relocating a house?
Almost any home can be moved. You'll need to hire the services of a specialist who can coordinate the complexity of the task. Generally speaking the smaller the home and the less distance between lot locations, the less expensive it will be to move. However, other factors can influence cost. Some of these factors include: the structural condition of the house prior to move, the distance, and the crew required to travel with and reassemble the home at the new site.

Fees to move an entire house conservatively start at $8,000 and quickly ramp up from there. Other payables associated with moving an entire house include new insurance and permits, new utilities, labor costs, and contractor services required to build a brand new foundation.

Still, for some lucky buyer, a home for a $1 could be an opportunity to snap up a home crafted in one of the most popular and enduring architectural styles. Craftsman homes typically contain built-in cabinetry, heart-pine wood, and highly-skilled crafted details all but lost in most of today's home construction.

In addition, older Craftsman homes, perhaps even this Michigan bungalow, are frequently built from natural resources that today are more expensive and more rare than when these homes - popular in the turn of the last century - were constructed.

Enticing buyers with the promise of a whole house for a "clam", even a whole house for just 100 pennies seems like a good idea for unique, older homes in need of preservation. For instance, the city of Saint Paul, Minnesota is trying to sell a neighborhood of homes for a dollar each to attract and retain residents. The bonus of a Saint Paul purchase? No need to put the home on wheels and move it, whole hog, to another location.

Jon & Kate Minus Home

Katie McCaskey — 2010-02-23T14:00:00 00:00

Filed under: News

Reality-show stars Jon and Kate Gosselin have sold the Pennsylvania home that once housed both their 10-member family and their out-sized marital tension.

The now-divorced couple listed their Cape Cod style home on Andrew Avenue in Elizabethtown for $385,000 in March 2009. The 3,446 square foot home features five bedrooms and two and one-half bathrooms, and sold for $258,000, according to The Wall Street Journal.

That's a selling price of $22,000 less than what they purchased it for in 2006.
This was the Gosselin family home prior to making a name for themselves as the parents of a set of twins and sextuplets on the popular TLC reality show "Jon & Kate Plus 8".

The show documented their lives, and, with growing children and TLC paychecks the couple upgraded to a $1.1 million, 6,000 square foot mansion in Wernersville, Pennsylvania in 2008. The newer home, where Kate and kids now reside, sits on a 24 acre, fenced property with a large, metal gate, according to People magazine.

The bitter Gosselin divorce may have terminated the marriage, but not the television show. The New York Post reports the family is under contract for another series.

Jon Gosselin made news again a few months ago when he moved into a Manhattan apartment with his girlfriend.

The Gosselins are not the only entertainment figures to sell at a loss. Ashley Olson and Scarlett Johansson are listing their Los Angeles homes at a loss, too.