Category Archives: selling

Are mortgage interest rates really ‘historic’ now?

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We hear it all the time. Headlines trumpet “mortgage rates at historic lows!” Could this really be true, or is it hype? Curious to find out, we researched mortgage rates way back to 1981 to find out the real story. Which is to say, yes, our current interest rates are historic.

Back then, some 30 years ago, the interest rate was a whopping 16.70 percent (can you image that?) for a 30-year fixed rate mortgage in June 1981, according to mortgagenewsdaily.com. In between then and now, rates did moderate to averages of about 11.50% in 1983; 8.43% in 2000; 6.88% in 2008.

So yes, the 4.73% average now really is historic. For buyers and sellers, this may be the most influential component in deciding to enter the housing market now. Buyers are enticed by the low rates and the increased housing stock. Sellers have the advantage too. Low interest rates bring in potential sales, and if your home is competitively priced and improved to match comparable homes in your neighborhood, your success rate will be high.

Spring and early summer are the peak times for buying and selling. Buyers want to settle into their new neighborhood when the weather is nice and they can be outside to meet neighbors. Children also benefit with an early summer move so they can adjust to new friends and schools.

For sellers, advantages include the opportunity to increase curb appeal and add special touches to landscaping to really show off their property. Homes show much better in the summer months with loads of outdoor natural lighting streaming in through the windows. And sellers want to be somewhere else, established in their new neighborhood.

If the interest rate is the prime motivation for buying or selling, this is the right time. We see the rates hovering around 5% or less for the foreseeable future. Wait or not, there is success out there for both buyers and sellers.

Yes you can sell your home this summer! Take a look at what buyers want and get your home ready to go.

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We’ve all heard that this is a buyers’ market, there are plenty of real estate choices and buyers expect the lowest price possible. This can put sellers on the defensive. However, you can position your home in this market to satisfy buyers and get fair market value for your property.

Price. Your real estate agent will help you determine a fair price for your home. She will provide you with comparable homes in your area so you can be competitive as soon as your home is listed. Pricing your home too high will only turn away serious buyers and get yourself into a stressful negotiations battle.
Basically solid. Position your home as well maintained, solid and ready to move in. Today’s buyer wants a home that has value for years to come. A pre-sale home inspection is a good idea. The inspector will help you decide what you need to fix or upgrade structurally to make your home more appealing.
Energy efficiency. One of the most enticing selling points now is energy efficiency, which points to lower utility costs down the line. Emphasize your home’s energy efficient aspects, such as appliances, heating and cooling systems, windows, lighting and insulation.
Incentives. Some sellers offer incentives to lure buyers, such as financial assistance at closing, purchasing the first year for a home warranty, sharing closing costs, paying a year’s worth of home association dues or prepaying property taxes. Offering incentives up front do make your property stand out and can shorten the negotiation process.
Outdoor living. A seemless transition between indoor and outdoor living is a popular plus these days. Highlight your lovely deck, patio or screened-in porch. Here’s a wonderful opportunity to stage that area with lighting, colorful flowers and landscaping and furniture. Not only is this a selling point, but you’ll enjoy your outdoor living space right now.

Present you home with positives in place, clean and de-clutter, repair, update and price reasonably. Your property will stand out and attract the right buyer for the best deal.

Fixed-rate mortgages are down again, opening more opportunity for buyers and sellers

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In the very near future, the Echo Boomers will have a positive effect

Fixed-rate mortgages (FRM) have declined again according to Freddie Mac’s Mortgage Market Survey, and there are some very motivated sellers out there who are willing to deal. This week the 30-year fixed-rate mortgage averaged 4.36 percent, a 0.7 point drop from the previous week. A year ago, this mortgage averaged 5.24 percent.

The 15-year FRM set a record low with an average of 3.86 percent. Last year at this time the 15-year mortgage averaged 4.58 percent. Home sales, both existing and new, slowed down precipitously in July following the close of the $8,000 tax credit plan. Freddie Mac Deputy chief economist Amy Crews Cutts reports that much of the recent housing slowdown was “expected due to the recently expired homebuyer tax programs.” On the plus side, Crews Cutts sees house prices stabilizing. “Nationally, house prices rose 0.9 percent seasonally adjusted during the second quarter. This after 11 consecutive quarterly declines.”

While much of the economic news isn’t as heartening as we projected, there is some room for hope for buyers and sellers. Sellers really want to sell. They are motivated, want to deal and move on. In the same scenario, lenders are eager to sell foreclosed and underwater properties. This is an opening for buyers who are patient, willing to wait and push complex contracts to a successful end.

As it is now, the crux of economic recovery depends on more employment, which will lead to a more robust housing market and increased consumer spending. Looking ahead, another massive influence in housing is the coming of age of the Echo Boomers, or the children of the baby boomers. Born between 1977 and 1997, this group is the largest demographic group in the United States and is expected to raise housing demand for the next two decades.

This group will be buying real estate, but in a much different way than their parents. Tethered to high-tech, digital devices and more impressed with their peer’s opinions rather than traditional advertising, this social networking generation will test buyers, sellers and the real estate industry to adapt to their way of doing business.

As we struggle with a slow economic recovery, it will be interesting to see how we learn to adapt to a new way of doing business in the very near future.

Bathroom renovations top kitchens as the best home investment

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Start and end your day in a peaceful bathroom retreat.

Curb appeal, updated kitchens and bathrooms are always big draws for potential buyers. Kitchens were traditionally the most common remodel, but this year the bathroom has surged ahead, according to a survey conducted by the National Association of Home Builders.

Homeowners are also avoiding large remodeling projects, such as room additions, whole house remodeling, installing pools and lavish outdoor living spaces. Instead, they choose the smaller bathroom project that can add panache and a sense of individuality.

While small, a bathroom remodel can be expensive, as is any project involving plumbing and water. Bathrooms today are being designed as personal retreats from the frenetic pace of life. Soaking tubs are big, as is a separate shower, beautiful tile, radiant heating and heated towel racks.

Still, remodeling a bathroom is one of the smarter investments a homeowner can do to add value.

The first step is to conceptualize just what you want for your bathroom. Writing a wish list helps with organization, and with deciding how much the project may cost. Research bathroom ideas at retail stores and by visiting newly remodeled bathrooms. You’ll be surprised how a simple idea turns into a functional centerpiece. The Internet is another wonderful resource for ideas, color coordination, bath features and online planning guides.

Doing this preliminary work also sets the stage for the second step, finding a reliable, professional contractor. Communication is the absolute key when doing a renovation, and unless you and the contractor are speaking the same language and understand the ultimate goal, problems will pop up.

While some do-it-yourselfers may be able to take on a bathroom remodel, a contractor is usually the best bet. He or she knows how to get the required permits and build according to your local code. Nothing is more disheartening when an inspector comes, finds issues and the whole job needs to be taken out.

Two major concepts are important in your remodel–lighting and circulation. John Rhia at houselogic.com emphasizes how important natural lighting and heavy-duty ventilation are. Good lighting creates an open, airy feeling, which is especially important in a small bathroom. And, well-designed lighting systems remove shadows so you’ll know how you look in the morning.

Ventilation is a major issue. Without it, the bathroom not only smells, well, like a locker room, but also breeds humidity, mold and mildew. Not only are these culprits expensive to remediate, they also will destroy expensive cabinetry.

A bathroom upgrade will bring many rewards, not only by adding value to you home, but also by providing you with a peaceful retreat to start and end your day. For success, take it slowly, be specific about what you want, and let the experts handle the water and plumbing.

Learn more about Return on Remodel in Saint Charles County Real Estate

Selling Your Home this Spring Means Paying Attention to Details

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Enlist a friend to help you simplify your house and eliminate dirt, odors

This spring is shaping up to be a hopeful time for homebuyers and sellers. The Federal Reserve indicates interest rates will stay low for the time being and the Commerce Department reports that new home sales in March were up 27 percent. Still, the best way to sell a home is to have it in the best condition ever and be ready for your REALTOR to show the house on short notice.

A great way to discover buyer turnoffs is to enlist a friend to tour your home as a potential buyer. The first issue you may encounter is:

DIRT–To ready a home for sale, hire a cleaning service to deep clean, including sparkling windows, carpet cleaning, washing the woodwork and give special attention to the kitchen for grease issues and the bathroom for moldy grout. Once the house is thoroughly cleaned you have an easier job of daily surface cleaning. Because your friend doesn’t live here, she can eye dirt that you wouldn’t see every day. To make cleaning easier, take “you” out of the picture.

CLUTTER–Buyers need to see themselves in your property, not you. While it may be difficult for you to depersonalize your home, those personal items detract from the spaciousness and distract buyers with eye clutter. Pack up your pictures, your souvenirs from Disneyworld and that collection of 200 ceramic dogs and let the simplicity flow. Remember, you’ll have your prized possessions back once you sell and move into your next home.

ODORS–Speaking of dogs, not everyone loves canines (or cats) as much as you do. Lingering pet scents make buyers suspicious–how much damage have the cats and dogs made that is not immediately visible. Pet odors can be removed with your initial deep cleaning project, and pet stuff, like bowls, visible bags of food, litter boxes and toys should be gone when a potential buyer tours the house. Keep your home fresh smelling with gently scented candles and refrain from cooking fish, garlic and bacon.

CURB APPEAL–The clutter rule applies here too and fresh is the word. Plant colorful annuals, trim bushes and perennials. Put away gardening tools and all those plastic kids’ riding toys. Sweep your sidewalk regularly and remove excess lawn ornaments.

When you incorporate these tips in your home selling process you’ll reduce your stress, angle for a quick sale and resume your life in a new place.

St. Charles County Real Estate

Written by Myra Vandersall