Tuesday, April 29, 2008

8 Quick Fixes to Increase Value

In today's market is is even more important that you get every penny out of the sale of your home. Below are 8 quick fixes to help you do just that.


8 Quick Fixes to Increase Value

With buyers scarcer, sellers must up the ante to convince them that their property offers what many want most — top value for dollar expended. Here are eight fast fixes:

1. Buff up curb appeal. You’ve heard it before, but it’s critical to get buyers to want to look on the inside. Be objective. View listings from the street. Check the condition of the landscaping, paint, roof, shutters, front door, knocker, windows, house number, and even how window treatments look from the outside. Add something special—such as big flower pots or an antique bench — to help viewers remember house A from B.

2. Enrich with color. Paint’s cheap, but forget the adage that it must be white or neutral. Just don’t let sellers get too avant-garde with jarring pinks, oranges, and purples. Recommend soft colors that say “welcome,” lead the eye from room to room, and flatter skin tones. Think soft yellows and pale greens. Tint ceilings a lighter shade.

3. Upgrade the kitchen and bathroom. These make-or-break rooms can spur a sale. But besides making each squeaky clean and clutter-free, update the pulls, sinks, and faucets. In a kitchen, add one cool appliance, such as an espresso maker. In the bathroom, hang a flat-screen TV to mimic a hotel. Room service, anyone?

4. Add old-world patina. Make Andrea Palladio proud. Install crown molding at least six to nine inches in depth, proportional to the room’s size, and architecturally compatible. For ceilings nine feet high or higher, add dentil detailing, small tooth-shaped blocks used as a repeating ornament. It’s all in the details, after all.

5. Screen hardwood floors. Buyers favor wood over carpet, but refinishing is costly and time-consuming. Screening cuts dust, time, and expense. What it entails: a light sanding, not a full stripping of color or polyurethane, then a coat of finish.

6. Clean out, organize closets. Get sorting—organize your piles into “don’t need,” “haven’t worn,” and “keep.” Closets must be only half-full so buyers can visualize fitting their stuff in.

7. Update window treatments. Buyers want light and views, not dated, fancy-schmancy drapes that darken. To diffuse light and add privacy, consider energy-efficient shades and blinds.

8. Hire a home inspector. Do a preemptive strike, since busy home owners seek maintenance-free living. Fix problems before you list the home and then display receipts and wait for buyers to offer kudos to sellers for being so responsible.

Friday, April 25, 2008

Bankrate: Mortgage Rates Rise for Second Straight Week

RISMEDIA, April 25, 2008-Fixed mortgage rates moved slightly higher for the second week in a row, with the average conforming 30-year fixed mortgage rate rising to 6.11%. According to Bankrate.com’s weekly national survey of large lenders, the average 30-year fixed mortgage has an average of 0.43 discount and origination points.

The average 15-year fixed rate mortgage popular for refinancing increased to 5.70%, while the average jumbo 30-year fixed rate inched higher to 7.34%. Adjustable mortgage rates were no exception, with the average 1-year ARM rising to 6.55% while the average 5/1 ARM moved up to 5.92%.

Mortgage rates were higher over the last week due to persistent concerns about inflation, as oil prices approached $120 per barrel, and hopes that the housing market is bottoming. Bond yields, to which mortgage rates are closely related, moved up in response. With another interest rate cut expected from the Federal Reserve at their meeting next week and a full economic calendar into early May, mortgage rates could be volatile. Further signs of economic weakness would likely push mortgage rates down, but inflation could propel rates higher.

Mortgage rates have been on a wild ride since the beginning of the year. The average 30-year fixed mortgage rate was as low as 5.57% in January, meaning that a $200,000 loan would have carried a monthly payment of $1,144.38. In February, the average 30-year fixed rate got as high as 6.41%, which meant the same $200,000 loan would have carried a monthly payment of $1,252.32. Today, with the average rate at 6.11%, a $200,000 loan would mean a monthly payment of $1,213.28.

SURVEY RESULTS

30-year fixed: 6.11% — up from 6.03% last week (avg. points: 0.43)
15-year fixed: 5.70% — up from 5.65% last week (avg. points: 0.41)
5/1 ARM: 5.92% — up from 5.85% last week (avg. points: 0.51)

Bankrate’s national weekly mortgage survey is conducted each Wednesday from data provided by the top 10 banks and thrifts in the top 10 markets.

For more information, visit http://www.bankrate.com/mortgagerates.

Wednesday, April 16, 2008

Why Selling Now Makes Sense

Daily Real Estate News | April 16, 2008


Home owners who are reluctant to sell because prices have fallen, should do the math, and realize that the market downturn could work in their favor, say practitioners in hard-hit, but still pricey Boston.

Their reasoning may work in many other parts of the country as well.

"People are finding houses at prices they thought they'd never see again," says David W. O'Neil of Century 21 Spindler & O'Neil Associates in suburban Boston.

O’Neil points out to potential sellers that if the house a buyer covets used to be $500,000 but its price has fallen 20 percent to $400,000, it is a deal, even if the buyer’s own home also has lost 20 percent of its value.

In general, the toughest sell is people who bought about four years ago at the height of the market, says Zur Attias of The Attias Group at Barrett & Co. in Concord, Mass. But even for these home owners, selling now may make sense as long as they can at least break even.

He argues that almost everyone forgoes something, and probably several things, that he or she wanted when buying a house. For instance, the home may be in the right school district, but on a busy street. Or it may in a great neighborhood, but it's a Cape, not a Colonial. These are things Attias calls "unchangeables."

He says it’s a good time to sell if a seller can get rid of the most negative unchangeables in his current home, and replace them with better unchangeables in a new home. Once the market really turns around, the growth will be bigger in the better house, he predicts.

Source: The Boston Globe, Vanessa Parks and Jonathan Wiggs (04/13/2008)

Friday, April 11, 2008

FHA Loans Can Ease Mortgage Dilemmas

Daily Real Estate News | April 11, 2008


Potential home buyers may be hesitant as they start their hunt in today's market, but many quickly discover that their market is full of choices, sellers are becoming more willing to negotiate, and interest rates are still low.

That's not to say there will be no setbacks. The hard part may come when they go shopping for a mortgage. Minnesota Mortgage Association President Tim Bendel said 100 percent financing has all but disappeared. He advises borrowers with good credit scores seeking a conventional loan to come to the table with at least a 5 percent down payment. Borrowers with credit scores below 700 may need a more significant 20 percent down payment.

But there is help on that front. The answer for some buyers is a Federal Housing Administration (FHA) loan. Credit scores count less with FHA loans; the more important factor is whether the potential borrower has paid other bills on time, says Todd Johnson, CEO of Edina Realty Mortgage. FHA's government-backed loans require only 3 percent down and allow cosigners and gifts for down payments.

Source: Star-Tribune, Kara McGuire (08/06/2008)

Thursday, April 10, 2008

Mortgage Applications Increase in Latest MBA Weekly Survey

RISMEDIA, April 10, 2008-The Mortgage Bankers Association (MBA) released its Weekly Mortgage Applications Survey for the week ending April 4, 2008. The Market Composite Index, a measure of mortgage loan application volume, was 725.6, an increase of 5.4% on a seasonally adjusted basis from 688.3 one week earlier. On an unadjusted basis, the Index increased 5.7% compared with the previous week and was up 10.9% compared with the same week one year earlier.

The Refinance Index increased 3.4% to 2724.7 from 2636.0 the previous week and the seasonally adjusted Purchase Index increased 8.1% to 384.7 from 356.0 one week earlier. The Conventional Purchase Index increased 6.1% while the Government Purchase Index (largely FHA) increased 15.2%. On an unadjusted basis, the Conventional Purchase Index increased 6.3% to 561.1 from 527.7 the previous week. The seasonally adjusted Conventional Index increased 3.8% to 935.8 from 901.8 the previous week, and the seasonally adjusted Government Index increased 12.9% to 375.2 from 332.4 the previous week.

The four week moving average for the seasonally adjusted Market Index is up 1.8% to 758.0 from 744.5. The four week moving average is up 1.1% to 377.4 from 373.4 for the Purchase Index, while this average is up 2.4% to 2987.8 from 2918.6 for the Refinance Index.

The refinance share of mortgage activity decreased to 52.2% of total applications from 53.4% the previous week. The adjustable-rate mortgage (ARM) share of activity increased to 6.5 from 5.4% of total applications from the previous week.

The average contract interest rate for 30-year fixed-rate mortgages increased to 5.78% from 5.75%, with points decreasing to 1.11 from 1.19 (including the origination fee) for 80% loan-to-value (LTV) ratio loans.

The average contract interest rate for 15-year fixed-rate mortgages increased to 5.39% from 5.27%, with points decreasing to 1.11 from 1.13 (including the origination fee) for 80% LTV loans.

The average contract interest rate for one-year ARMs increased to 7.06% from 7.00%, with points increasing to 1.46 from 1.39 (including the origination fee) for 80% LTV loans.

The survey covers approximately 50% of all U.S. retail residential mortgage applications, and has been conducted weekly since 1990. Respondents include mortgage bankers, commercial banks and thrifts. Base period and value for all indexes is March 16, 1990=100.

For more information, visit www.mortgagebankers.org.

Tuesday, April 8, 2008

Existing-Home Sales to Level Off

Daily Real Estate News | April 8, 2008
NAR: Existing-Home Sales to Level Off

Little change is expected in existing-home sales over the next few months, before improving notably during the second half of the year, according to the latest forecast by the NATIONAL ASSOCIATION OF REALTORS®.

Lawrence Yun, NAR chief economist, says the market will come into clearer focus this summer.

“Existing home sales could start to show a sustained increase within a few months, unless there are some additional economic problems or excessive inflationary pressure,” he says. “We’re looking for essentially stable sales in the near term, before higher mortgage loan limits translate into more sales in high-cost markets. The wider access to affordable credit should increase sales activity notably this summer as pent-up demand begins to be met.”

The Pending Home Sales Index, a forward-looking indicator based on contracts signed in February, slipped 1.9 percent to 84.6, from an upwardly revised reading of 86.2 in January. The index was 21.4 percent lower than the February 2007 index of 107.6.

“The slip in pending home sales implies we’re not out of the woods yet, though an era of successive deep sales declines appears to be over,” Yun says.

Choosing Homeownership

Choosing Homeownership
Military.com | By Wells Fargo

Homeownership is about security, comfort, and fulfilling the American dream. The sense of community that comes with putting down roots in a place of your own, the security of owning the roof over your head, the opportunity for financial growth -- all these accompany the choice to become a homeowner.

But buying a home is also the single largest investment most people ever make. Along with all the benefits of homeownership comes the responsibility to manage that investment wisely.

Benefits of homeownership

The rewards of owning your own home include many benefits unavailable to renters. Among other things, homeownership allows you to:

Start building wealth: Making a mortgage payment every month builds up your equity stake in your home, contributing to your long-term savings and helping you solidify your financial future.

Reduce your tax burden: The interest you pay on your mortgage is usually tax-deductible, which can lead to significant tax savings--especially in the early years of the mortgage term, when most of your monthly payments go toward interest. Make sure you consult your tax advisor about the deductibility of interest.

Build your credit history: Timely mortgage payments can contribute to a positive credit history.

Eliminate landlord hassles: You'll no longer have to fear non-renewed leases and rent increases.

Make the house your own: Aside from zoning rules, Homeowner's Association requirements, and local building codes, you'll be free to decorate, remodel, and renovate as you wish.


Responsibilities of homeownership

Before deciding to buy a home, consider the responsibilities that will accompany your purchase. You will most likely have to make some adjustments to account for the following:

Additional financial responsibility: Whether buying is more costly than renting depends on your individual circumstances. As a renter, some or all of your utilities may have been paid for, but now they will be solely your responsibility. You'll also be responsible for property taxes and homeowner's insurance in addition to your loan.

Maintenance and repairs: Maintaining your property will be up to you, not the landlord.

Less mobility: Unlike having a lease where you can move with minimal notice, moving when you own a home is more complicated since you're responsible for ensuring the mortgage gets paid.

Depreciation: Real estate often increases in value over time, but not always. Owning a home means facing the risk that its value will depreciate.


Beyond the financial benefits, the personal rewards of homeownership can be tremendous -- as long as you prepare for the responsibilities that come along with it, and choose a home and a mortgage that are well-suited to your needs.

Friday, April 4, 2008

People Say San Diego Is High

Read below and then be thankful you live in San Diego!!!

Manhattan Average Apartment Price Hits New Record


RISMEDIA, April 3, 2008-Demand for high-end real estate continues to buoy the market in Manhattan as the average apartment sale price hit a new record of $1,690,995 in the first quarter of 2008, according to Halstead Property’s First Quarter Market Report. The new record represents an increase of 47 percent from a year ago. The median sale price, which is more reflective of the current market, also set a new record at $855,000, rising 13% from the first quarter 2007.

“The closings at luxury developments 15 Central Park West and The Plaza have obviously had a large impact on the first quarter numbers. Without the sales at these two condominiums, the overall average apartment price would have been $1,417,496, which would have reflected a gain of 23 percent over last year and that is still a substantial increase. Overall, the luxury market is incredibly strong - the number of apartments sold over $10 million increased 318% from the first quarter of 2007,” said Diane M. Ramirez, president of Halstead Property.

How to Make This the ‘Perfect Spring’ to Buy a Home

RISMEDIA, April 4, 2008-For home buyers, this might be called the “perfect spring,” when conditions have come together to create a rare and excellent opportunity to buy a home, says Diane Turton, broker of record at Diane Turton, Realtors. In fact, for the first time in 30 years, home buyers can take advantage of low mortgage rates, combined with a large selection homes that are realistically priced.

By acting now during the spring selling season families can find a home, complete the sale and move in just before the new school year. Also, there is still time purchase a vacation or second home and enjoy this summer at the shore.

“The advantages of buying a home this spring are crystal clear,” said Turton. “The wisest and most serious buyers are in the market today.”

Even though it is a perfect home buying time, knowing your options, getting prepared and bringing in the right help will make the home buying experience successful.

Following are guidelines from Turton that will help make this the perfect season to buy a home:

- Get a handle on your expenses, plan a budget and start a fund for your down payment. Although it is possible to get a mortgage with only five percent down - or even less in some cases - you can usually get a better rate and lower overall cost by putting more money down.
- Do your homework to determine how big a mortgage you can afford. Your mortgage lender can assist you with this process or you can do the work yourself with online mortgage calculators.
- Retain a good real estate sale associate who is experienced, an excellent negotiator and knows the local housing market. A real estate transaction is complicated and is difficult to complete alone. In most cases, buying a home requires completing disclosure forms, inspection reports and mortgage documents as well as getting insurance policies and taking care of many details. Finding someone who can guide you through this process will help avoid delays and costly mistakes.
- Know what kinds of other professionals you will need to make to complete the transaction. Some of these professionals include a real estate attorney, home inspector, appraiser, title company expert, tax advisor and various environmental inspectors and specialists.
- Determine your closing costs. From homeowners’ and title insurance to well water testing, there are many costs, both large and small, that a homebuyer will be expected to pay at the signing. The sales agent can provide an accurate estimate of these costs, so there are no surprises as the transaction approaches a close.

Remember, while it is a perfect season for home buying, it is important to do things right, so that spring 2008 becomes a memorable time when you buy that dream home

States Enact Roadblocks to Foreclosure

Daily Real Estate News | April 4, 2008

States are responding aggressively and ahead of the federal government in helping home owners avoid foreclosure.

Here's what some states have been doing:

Ohio has contracted with more than 1,000 attorneys to work with borrowers free of charge to block foreclosures.
Illinois is considering a bill that would impose a 60-day moratorium on some foreclosures.
Maryland has enacted emergency legislation to give borrowers at least 150 days to cure defaults, effectively creating a short-term moratorium on foreclosures.
Minnesota is considering requiring lenders to honor a borrower’s request for a 12-month deferment.
Beginning May 1, borrowers in Massachusetts will have 90 days to cure any defaults before their mortgage company can foreclose.

The Mortgage Bankers Association opposes foreclosure moratoriums.

Source: The Wall Street Journal, Ruth Simon and Amy Merrick (04/04/08)

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