Wednesday, September 30, 2015

Case-Shiller Housing Market Index: Home Prices Rise in July

Case Shiller Housing Market Index Home Prices Rise in JulyU.S. home prices rose by 0.10 percent in July according to the S&P Case-Shiller Housing Market Index. San Francisco, California edged past Denver Colorado with a year-over-year price increase of 10.40 percent as compared to Denver's reading of 10.30 percent. All year-over-readings for the 20-City Home Price Index posted gains, but Washington, D.C. showed the lowest year-over0-year growth rate at 1.70 percent. Chicago, Illinois and New York City followed closely with year-over-year readings of 1.80 percent and 1.90 percent respectively

Seasonally-Adjusted Home Prices Fall

Although seasonally-adjusted home prices typically rise during the peak home selling season during spring and summer, July's reports indicated that seasonally-adjusted home prices fell by 0.20 percent in July. Factors including tough mortgage approval requirements and low inventories of available homes likely contributed to slower growth in home prices as demand for homes fell.

Would-be home buyers may also have sat on the sidelines awaiting the Federal Reserve's decision regarding raising rates. The Fed has not raised rates yet, but may do so in October. Mortgage rates are expected to rise when the Fed raises its target federal funds rate, which is currently set at 0.00 to 0.25 percent

Western Cities Lead Home Price Growth

Case-Shiller reported that as of July, the West continues to see the highest rates of home price growth. Over the past 12 months, only San Francisco and Denver have shown double-digit growth in home prices. Los Angeles, San Francisco and San Diego, California have shown the strongest increases in home prices since 2000.

Home prices for cities included in the 20-City Index have risen 35.70 percent since home prices hit their post -recession low in 2012, but remain 13 percent below the housing bubble's peak prices. All cities in the 20-City Index posted price gains year-over-year as of July and 14 cities posted higher price gains than for the comparable period ending in July 2014

Trend: Modest Home Price Growth Continues

The Federal Housing Finance Agency recently posted a year-over-year gain of 5.80 percent for home prices associated with mortgages owned or backed by Fannie Mae and Freddie Mac. This news further supports the trend of moderate gains in U.S home prices; moderate growth in home prices could encourage more moderate-income and first-time home buyers to buy homes, particularly in advance of the anticipated increase in mortgage rates when the Federal Reserve raises interest rates.

Tuesday, September 29, 2015

Stepping Up Your Game: Staging Your Home to Make It More Appealing Than New Construction

Stepping Up Your Game: Staging Your Home to Make It More Appealing Than New ConstructionWhen it comes to buying a home people are more apt to consider a newer model. After all new homes are more energy efficient; require less maintenance the perks many buyers want. For homeowners with older homes getting a competitive edge can take a lot of extra work, especially in today's real estate market.

Give Older Homes A Fresh Look

But there are ways to make older homes stand apart from newer homes on the market. Start by sprucing up the outside out the house. It's amazing how a fresh coat of paint and a newly paved driveway can improve the curb appeal of an older home. Also, it's good to remodel any room that could use a fresh, updated look like the kitchen and the bathroom for instance.

Homeowners of older houses don’t have to spend a fortune to make their homes look like new, but it helps to help the prospective buyer feel easy about not having to commit to a heavy remodeling job if they buy the house.

Staging Works Wonders For Selling A Home

While cosmetic touch-ups are wonderful, there's one thing the serious home seller should apply and that’s home staging. The ultimate goal of staging is to make a home as attractive to as many potential buyers as possible. More interested buyers means the home could potentially sell for more and sell faster. Staging isn't new but has become more popular in this tough market.

Home staging is often mistaken for decorating, but it’s much more than that. Expert home stagers know how to present homes in the best possible light. This often means suggesting paint colors, or rearranging and moving items to make a particular space more appealing to buyers.

For instance, most lived in homes have one thing in common, clutter. Showing a house with clutter can make a buyer feel a home is too small. Expert home stagers know how to open up a home so the perspective buyers can see themselves living there.

According to the Real Estate Staging Association, home staging reduces listing time by as much as 81 percent. Also, there’s an up to 10 percent return on investment when home staging technique is implemented.

It is true that staging a home can be a bit of a challenge. Some homeowners may be bit put off by a stager's suggestions, and by the inconvenience of the process itself. However, the result can be well worth it if it results in a quick sale.

Homeowners should call their trusted real estate agent, right away before deciding on a home staging professional. A real estate agent may even have a list of professional home stagers he or she regularly refers.

Monday, September 28, 2015

What's Ahead For Mortgage Rates This Week - September 28, 2015

Whats Ahead For Mortgage Rates This Week September 28 2015Last week's scheduled economic news included reports on new and existing home sales, the FHFA House Price Index, weekly reports on mortgage rates, and new jobless claims. The week finished with a report on consumer sentiment.

Existing Home Sales Fall as New Homes Sales and Home Prices Rise

The National Association of Realtors reported that home sales for pre-owned homes fell in August. Analysts expected sales of existing homes to reach a reading of 5.52 million sales on an annual basis, but the actual reading was 5.31 million existing homes sold as compared to July's reading of 5.58 million pre-owned homes sold. Rising home prices were cited as a primary reason for the drop in sales.

FHFA's House Price Index for July reflected the trend of rising home prices; July's reading was 0.60 percent as compared to June's reading of a 0.20 percent increase in home prices associated with homes with mortgages owned by Fannie Mae or Freddie Mac.

Sales of newly built homes reached the highest level since early 2008 in August, evidence that demand for housing is strengthening heading into the fall. Home builder sentiment is at its highest level in nearly a decade according to a survey earlier this month from the National Association of Home Builder

Mortgage Rates Fall

Freddie Mac reported that average mortgage rates fell on Thursday; the rate for a 30-year fixed rate mortgage was 3.86 percent; the average rate for a 15-year mortgage was 3.08 percent and the rate for a 5/1 adjustable rate mortgage  dropped by one basis point to 2.91 percent. Discount points were 0.70, 0.60 and 0.50 percent respectively.

Jobless Claims Also Rise As Consumer Sentiment Fell.

The number of Americans seeking unemployment benefits rose slightly last week yet remained at a low level consistent with solid job growth. The Labor Department says weekly applications for jobless aid rose 3,000 to a seasonally adjusted 267,000. The four-week average fell to a 15-year low last month.

The University of Michigan says consumers lost confidence for the third straight month in September, worried about bad news about the global economy. Consumer sentiment index fell to 87.2 this month, lowest since October 2014 and down from 91.9 in August. Richard Curtin, Chief Economist for the survey, said consumers are worried about signs of weakness in the Chinese economy and continued stresses on Europe's economies.

What's Ahead

This week's economic reports include Pending Home Sales, the Case-Shiller Home Price Index, Core Inflation, ADP Employment and the government's Non- farm Payrolls report. The national unemployment rate and Consumer Confidence Index for September are also slated for release this week.

Friday, September 25, 2015

Looking Ahead: How to Ensure That You Are Taking Full Advantage of Mortgage Tax Credits

Looking Ahead: How to Ensure That You Are Taking Full Advantage of Mortgage Tax CreditsOne of the major benefits to purchasing a home with a mortgage are the tax credits that can be taken advantage of when April 15 comes around.

Many homeowners are unaware of what mortgage related expenses can be deducted and, more importantly, which ones can no longer be deducted.

Receive A Tax Deduction For Interest Paid On The Mortgage

The most common tax credit associated with mortgages is the interest paid credit. This allows borrowers to deduct the cost of the interest paid on their mortgage on their taxes, which in many cases is the largest tax break available to homeowners.

Interest paid deductions on taxes are available to second mortgages as well as first time mortgages and are available on home equity lines of credit as well as home equity loans.

Mortgage Insurance Is No Longer Tax Deductible

Unfortunately, as of 2014 any mortgage insurance paid was no longer considered tax deductible. This came as a shock to many borrowers who planned their finances around receiving the tax credit.

Although mortgage insurance is no longer tax deductible, there are still other home related deductions that can be taken advantage of. Real estate taxes can be deducted the year they are paid and discount points purchased at the time of the sale can also be used as a deduction.

The IRS treats discount points as mortgage interest that is pre-paid and allows deductions on certain loan types.

Using Tax Information To Plan Ahead When Buying A Home

There is a limit imposed by the Internal Revenue Service on how large a loan can be to qualify for an interest paid tax deduction. Any loan that is over $1 million dollars is not allowed to have the interest paid towards it deducted when tax time rolls around.

This knowledge can be used to put the borrower in a beneficial situation in years to come when they plan to purchase a home. Limiting any loan to under $1 million dollars, no matter what the cost of the property, will allow the interest paid into it to be deducted the following year.

The tax laws are always changing and differ from state to state, so it is advised to contact a mortgage specialist with knowledge on mortgage tax laws to provide more information on which deductions you qualify for.

Thursday, September 24, 2015

A Great Problem to Have: How to Handle Multiple Offers for Your House or Condo

How to Handle Multiple Offers for Your House or Condo With the real estate game in a state of constant flux, getting an offer on your house or condo might seem encouraging enough. However, there's always the possibility that your property might hit the market hot, and this could mean more than one offer on your home. While having multiple offers can be the best of all outcomes, there are a few ways to handle this situation and make the most of your home sale.

Communication Is Key With Potential Buyers

The occurrence of having multiple offers on your home may put you in the power position, but you'll want to keep potential buyers in the loop and aware that you're fielding other offers. Ensure that each buyer supplies you with a pre-mortgage qualification letter and an offer by a deadline you choose, and let them know the tentative timeline on making a decision. This will keep your buyers aware of the situation, and reduce the chance of missing out on a potential sale.

Weigh Your Offers Before Making A Decision

Right off the bat, it may be tempting to go with the offer that seems the best on paper, but make sure to carefully consider the reliability of each potential buyer. It's important to look over each buyer's offer and determine if they seem like a consistent candidate that won't change their mind. Once you've determined your ideal buyer, you can move on to negotiating the sale of your home, just do this in a timely manner because any serious buyer will expect a timely response!

Don't Forget About Following Up

It can sometimes happen that the seller will get so excited about an offer on their home that they'll forget about everything else and prep for the moving vans. However, it's important to follow-up with each potential buyer to ensure selling success. Not only will this instill good will with each potential buyer, it may even provide a back-up offer in the event that the initial deal falls through.

Having a number of offers on your home is a great situation to be in, but you'll want to make sure you handle it appropriately so you don't miss out on the best deal. By keeping your potential buyers in the loop and following-up in a timely manner, making the sale might end up being the easiest part of your move. For more information on selling your home successfully, contact your local real estate professional today!

Wednesday, September 23, 2015

National Association of REALTORS - Sales of Pre-Owned Homes Dip

National Association of REALTORS Sales of PreOwned Homes Dip Sales of previously owned homes dropped in August by 4.80 percent on an annual basis for the first time in four months; the dip was likely caused by rising home prices. August sales were reported at a rate of 5.31 million; July's rate was 5.58 million sales of previously owned homes.

Sales of existing homes have risen 6.20 percent year-over-year; stronger labor markets and low mortgage rates were seen as contributing factors. Although economists expect the Federal Reserve to raise its target federal funds rate before year end, home sales are expected to stay strong through 2016. A Fed rate hike would mean that lending rates for consumer credit and mortgage loans would increase.

Analysts noted that July sales of pre-owned homes hit a post-recession high and characterized August's lower reading as a "hiccup." Month-to-month readings often reflect volatility caused by transitory influences; analysts typically rely on month-to-month rolling averages to track trends in housing markets.

Home Sales Thwarted by Slim Supply of Available Homes

Low inventories of homes for sale are likely keeping sales of previously owned homes from achieving their potential. In August, there were 2.29 million homes on the market, which represents a 5.20 month supply under current market conditions. August's volume of available homes was 1.70 percent lower than for August 2014.

The national median sale price for a home was $228,700 in August; this represents a year-over-year increase of 4.70 percent.

First-time Buyers Getting Back in the Game

First-time home buyers accounted for 32 percent of existing home sales in August as compared to a normal reading of 40 percent of existing home sales. Investors purchased 12 percent of pre-owned homes sold in August as compared to a post-recession high of 25 percent. Less competition from investors should allow more owner-occupant buyers to purchase homes without being priced out of bidding wars.

On another positive note, distressed sales of pre-owned homes comprised only 7 percent of sales, this is a strong indication that the tide of post-recession foreclosures is ending

FHFA House Price Index Also Shows Higher Home Prices

FHFA, the agency that oversees Fannie Mae and Freddie Mac, reported that home prices of homes associated with mortgages owned or backed by the two government-sponsored entities rose by 0.60 percent in July as compared to June's reading of 0.20 percent. Home prices were up 5.80 percent year-over-year in July, which is 1.10 percent below the peak index reading of 2007 and was near the November 2006 index reading.

Year-over-year home price readings for the nine census divisions were all positive and ranged from + 2.20 percent in the New England division to +9.40 percent in the Mountain division. Month-to month house prices ranged from -1.20 percent in the New England division to +1.60 percent in the Mountain division.

Tuesday, September 22, 2015

The New Home Warranty: Why This Benefit Alone Makes Buying New Worth Considering

The New Home Warranty: Why This Benefit Alone Makes Buying New Worth ConsideringWhen making the decision to purchase a home, there can be an array of questions to ask regarding location, size, style and additional features that will complicate things. If one of the considerations among these is whether to buy new or old, though, you may want to be aware of new home warranties. While buying new can seem like a risk, this type of warranty may help make at least one decision easy when it comes to your home purchase.

It's A New Home Benefit That's Often Guarantee

Currently, there are a number of places in North America where a third-party warranty or a builder's warranty are now required so the quality of a builder's work can be assured. While some builder's may offer a warranty when you purchase a home through them, a third-party warranty that is guaranteed in many regions will mean that you don't have to worry about paying out of your own pocket when a problem occurs with your new home.

The Coverage Included In New Home Warranty

Generally, a new home warranty will include insurance on your deposit and a guarantee against flaws with the work, the materials or the structure that may appear down the road. While this type of warranty will commonly cover standard issues that can occur with a new home, there's often the option for more extensive warranty coverage that will safeguard you in the event that issues beyond the basic appear.

What You Can Expect From Your Builder

If you've decided on a new home, you will want to research your builder and choose one that is reliable, up-front and will follow-up on any issues you may have with your new home. Once your house is close to completion, you'll have the opportunity to do a home inspection with the builder to take notes of any issues with your house – like a sticky drawer or a chipped cabinet – that may be present. The builder should be able to offer a completion date for these issues, and also provide you with information you need to keep your new house in tip-top shape.

There are no assurances when it comes to buying a house, but new home warranties are a good guarantee that you'll be covered in the event that a problem occurs. If you're interested in learning more about making a new home purchase or this type of warranty, you will want to contact your local real estate professional for more information.

Monday, September 21, 2015

What's Ahead For Mortgage Rates This Week - September 21, 2015

Whats Ahead For Mortgage Rates This Week September 21 2015Last week's economic releases included several reports related to housing. The Wells Fargo/NAHB Housing Market Index achieved its highest reading in nearly 10 years. Housing Starts dipped in August and Building Permits issued in August exceeded July expectations. The week's big news was actually no news. The Fed's Federal Open Market Committee decided not to raise interest rates. Fed Chair Janet Yellen followed up on the FOMC statement with a press conference and said that the Fed is not yet ready to raise rates, but that a majority of FOMC members are prepared to raise rates before year-end

Inflation Rate Remains Well Below Fed Benchmar

The Federal Reserve has set a goal of reaching an inflation rate of 2.00 percent as one of several considerations for raising the target federal funds rate that currently stands at 0.00 percent to 0.250 percent. The Consumer Price Index for August fell from July's reading of 0.10 percent to -0.10 percent in August. Lower prices were driven by lower fuel costs. The dip in consumer costs was the first since January.

The Core Consumer Price Index, which excludes volatile food and energy sectors, was unchanged at 0.10 percent in August, which matches analyst expectations and July's reading

NAHB: Home Builder Confidence Hits Highest Level in Nearly 10 Years

The Wells Fargo/NAHB Housing Market Index reached its highest reading since November 2005 with a one-point increase to a reading of 62 in September. Readings over 50 indicate that a majority of builders are confident about housing market conditions. September's reading was the highest since November 2005, when the NAHB Housing Market Index achieved a reading of 68.

Housing Starts Lower, But Building Permits Rise

The Commerce Department reported that August housing starts fell to a seasonally-adjusted annual reading of 1.13 million starts against projections of 1.16 million starts and 1.16 million housing starts in July. Residential building permits were higher in August with a reading of 1.17 permits issued for residential construction and 1/13 million permits issued in July.

Mortgage Rates Rise

Freddie Mac reported that mortgage rates rose across the board last week. The rate for a 30-year fixed rate mortgage rose by one basis point to 3.91 percent. The average rate for a 15-year mortgage also rose by one basis point to 3.11 percent and the average rate for a 5/1 adjustable rate mortgage also rose by one basis point to 2.92 percent. Discount points averaged 0.60 got 30-year fixed rate mortgages, 0.70 percent for 15-year mortgages and 0.50 percent for a 5/1 adjustable rate mortgage

What's Ahead

Next week's scheduled economic news includes reports on new and existing home sales, FHFA's House Price Index, along with regularly scheduled weekly reports on new jobless claims and mortgage rates.

Sunday, September 20, 2015

Home Buyer's Remorse: 3 Strategies That Will Help You Avoid Making Mistakes when You Buy

Home Buyer's Remorse: 3 Strategies That Will Help You Avoid Making Mistakes when You BuyIt might seem like selling a home and moving to a new place is enough pressure on its own, but buyer's remorse is a well-known phrase for a reason. If you're currently considering a home and are concerned about taking the plunge into purchasing, here are three strategies you will want to utilize before making a final decision.

Choose A Reliable Real Estate Agent

If you're venturing into purchasing a new home, making sure that you have the right person by your side to help you with all of the aspects of your home purchase. The agent you'll want to work with should be someone who is knowledgeable and experienced in your area, and whom you will feel comfortable trusting with the questions you can't answer yourself. When it comes to making this choice, trusting your instincts is a must.

Make Sure It's The Home You Really Need

It can be easy, once you get into the spirit of looking for homes, to veer off and start considering things beyond your price range that you don't really need, but get back to square one. If you find a home that you're seriously considering, make sure that it possesses most of the features you were originally looking for whether it's location, size or style. Before making the final decision, look over the list of things you're looking for and make sure any potential cons of your purchase are things that won't be a deal breaker after.

Consider Cost And Resale Value

It's not only important to make sure you're paying a price that you can afford for your new home, you'll also want to ensure that the resale value is something you can be happy with down the road. It may be hard to discern what a home's value will be in five or ten years, but thinking about what kind of renovations you want to do should determine if upgrading an outdated bathroom or kitchen will be worth it. While you'll want to be in a home you can enjoy in the present, ensure it's something that should have good market value in the future.

Buying a new home can be stressful enough without realizing that you didn't get what you really wanted after the fact, so it's important to think twice about what you're looking for. If you're wondering about more strategies for a purchase you can be happy with, you may want to contact your local real estate professional for advice and expertise.

Friday, September 18, 2015

NAHB: Builder Confidence Hits Highest Rate in 9 Years; Fed Doesn't Raise Rates

Whats AheNAHB Builder Confidence Hits Highest Rate in 9 Years Fed Doesnt Raise Ratesad For Mortgage Rates This Week September 8 2015The National Association of Home Builders (NAHB) / Wells Fargo Housing Market Index reported that home builder confidence rose by one point to a reading of 62 for September. This was the highest reading since November 2005, when the NAHB reported a reading of 68 for home builder confidence. Any reading above 50 indicates that more builders are confident about housing market conditions than those who are not.

NAHB notes that builder confidence has been growing at a moderate pace since July 2014; this is in line with economic conditions in general. Relatively low mortgage rates and stronger labor markets are helping would-be buyers with their decisions to buy homes now.

FOMC Statement and Fed Chair Press Conference: No Rate Hikes Yet

The minutes of the Federal Open Market Committee of the Federal Reserve revealed that Fed policymakers have decided to wait on raising the target federal funds rate, which is currently set at 0.00 to 0.25 percent. While the FOMC statement indicated that policy makers acknowledge moderate progress in economic growth, a majority did not feel that the economy is ready to withstand a rate hike. When the Fed does raise rates, consumers can expect to see higher mortgage rates as well as increases in lending rates for credit cards and loans.

FOMC members said that housing markets were growing at a steady but moderate pace, but that inflation was lagging below the Fed's benchmark 2.00 percent level due to transitory effects of lower energy and import prices. The Fed expects that inflation will reach its 2.00 percent goal over the medium term and will not likely raise rates until FOMC members are confident that inflation will rise as expected.

FOMC members continued to assert that any decision to raise rates will be based on close review of domestic and global financial and economic trends and will not be based on meeting the Fed's dual mandate of achieving maximum employment and an inflation rate of 2.00 percent.

Committee members also said that economic conditions could continue to warrant keeping the target federal funds rate below normal levels for the longer term.

Fed Chair Janet Yellen gave a press conference after the FOMC statement concluded. She addressed questions about the Fed's decision not to raise rates and said that concerns over global developments contributed to Fed policy makers' decision not to raise rates. Ms. Yellen explained that a stronger U.S. dollar has caused deflationary pressures and increased competition for U.S. exports. The Fed isn't overly concerned about global conditions at present, but changing circumstances could change the Fed's likely intention to raise rates before year end.

Thursday, September 17, 2015

The Pros and Cons of Paying Cash When You Buy Your Next Home

The Pros and Cons of Paying Cash When You Buy Your Next HomeWith mortgage bubbles and real estate issues still in recent memory, one might feel that their best option is to buy their next home using cash instead of borrowing the necessary funds. In today's article we'll explore the pros and cons of paying cash for that next house or condo.

The Pros Include A Feeling of Complete Ownershi

There’s a feeling of pride and joy that comes with owning a home outright. There are several other reasons for paying cash instead of signing on the dotted line and getting and being strapped to a 30-year mortgage. Perhaps the best reason is having 100 percent equity in the home.

The cash will be there to borrow in case of an emergency. Having cash on hand is great if a water pipe bursts or there’s a huge car repair bill. In addition, instead of paying a monthly mortgage, that money could be used to start a college fund, to grow savings or to invest.

And, credit problems wouldn’t be an issue since there wouldn’t be a need to check credit history in the first place. The homeowner may be able to negotiate a better price, which may result in a likelihood of a smoother sale, and attract more prospective buyers.

The Not So Great Reasons To Pay With Cash

Buying a home is one of the largest financial investments a person will make in his or her lifetime.

However, buying a home outright most likely means that a significant percentage of cash will be tied up in the house. Less cash will be on hand for savings, college funds, and emergencies like a plumbing malfunction or an expensive car repair.

While paying in cash may result in a mortgage life, if the property value drops for whatever reason, there’s no purchase protection. For instance, if the market value of a $100,000 home loses 10 percent that will be a loss of $10,000. Take this example and apply it to a mortgage down payment. If the market value falls, there’ll be a loss of $10,000, but the bank would take a loss for the remainder of the property value.

Also, when paying with cash, there is no third party property evaluation to ensure the buyer isn’t overpaying for the home. Banks will send a professional to provide a property evaluation check to verify the correct home value.

Buying a home is a significant personal decision. In today’s tough economy, homeowners are finding ways of cutting back on expenses. Owning a home outright, without the stress of mortgage payments can be extremely liberating. Sit down with a professional real estate agent today before making the decision to use cash to pay for a home.

Wednesday, September 16, 2015

The Quick and Easy Guide to Understanding the Math Behind Your Mortgage Closing Costs


The Quick and Easy Guide to Understanding the Math Behind Your Mortgage Closing CostsIt's amazing that in a year with extremely low mortgage rates being reported around the country, closing costs are up by as much as 6% from the previous year. Part of the reason for this is that the stricter regulations on loans have increased the costs to banks, and they always find a way to pass on new costs to the consumer.

Understanding Third-Party Closing Costs

When closing on a mortgage the borrower will notice a long list of additional fees that they are expected to pay for. These can range from insignificant into the thousands of dollars depending on the state and the deal. When looking at these fees you will notice that some are third-party fees.

This is not out of the ordinary and you are not being taken advantage of. These costs are for services rendered by outside companies at the request of the mortgage lender to make sure everything is in order with the property.

Closing Costs You Can Expect To Pay

Anybody going through the mortgage process for the first time should expect to see several odd sounding terms on the bill. The first is 'origination' or 'processing' which is the primary fee the lender charges for creating the mortgage.

Other fees include discount points, flood certification, title insurance, credit report and appraisal. These are all necessary for buying a home and should be expected to appear when closing.

The Trick Behind Zero-Closing Cost Mortgages

With closing fees adding up it may seem like a good idea to opt for a mortgage that has absolutely no closing costs if it's offered. While no money will be required up front, it adds up in the long run.

This is because the lender is making a deal. They agree to pay all the closing costs for the borrower in exchange for a slightly higher interest rate, which will pay out for them over the course of the mortgage.

The amount you can expect to pay really depends on the cost of living and real estate market where you're buying.

Tuesday, September 15, 2015

Home Sales Tips: How to Market the Community Around Your Home to Prospective Buyers

Home Sales Tips: How to Market the Community Around Your Home to Prospective BuyersSelling a home is more than real estate listings and making the home appealing to potential buyers. One factor to take into account when buying a home is its location, meaning the community surrounds the home.

For sellers as well as buyers, it's important to highlight the benefits of living in a particular community. After all, neighborhoods will have an enormous impact on the future buyer’s living experience.

It’s All About Walkable Neighborhoods

According to a Portland, Oregon-based company, City Observatory, there’s a growing demand for homes located in walkable neighborhoods. A decades-long love affair with commuting from suburban areas to work in the city has greatly lost its appeal.

Also, the growing demand for walkable neighborhoods is fueled by people desiring convenient access good schools as well as to entertainment options like movies, restaurants, and shopping. There’s also an appeal for easy access through reliable public transportation.

This trend has been around for a while now. In 2013, the National Association of Realtors found that 57 percent of study participants wanted smaller homes and shorter work commutes.

Fifty-five percent of participants said they would gladly get a small house with a small yard if it meant easy access to stores, schools, and restaurants. Plus, a walkable neighborhood also significantly increases property values. So play up the nearby community benefits that would entice potential buyers.

Great Neighborhood Amenities

Other favorable community amenities bicycle paths and libraries, parks. These are great bonuses for neighborhoods to attract fitness-minded individuals and promote a family-friendly atmosphere for buyers with kids. Speaking of kids, living in an excellent school district usually yields higher home values.

According to a survey conducted by the Demand Institute, almost half of participants wanted a pet-friendly neighborhood. In fact, this factor ranked higher than easy access to public transportation and even public schooling.

Neighborhood Safety

Safety is a top concern for most homebuyers. Although, there’s little one can do to quell neighborhood violence there are things an owner can do to make their home safer. They may want to consider studying security features on homes in their neighborhoods and adopt what they can, within reason.

What Potential Home Buyers Don’t Want In A Neighborhood

According to the National Association of Home Builders (NAHB), fewer home buyers were least impressed with communities with golf courses, a high population, gated communities, and mixed-use communities.

Homeowners, when listing a home, seek the help of a trusted real estate agent experienced in listing the best features of both the home and the community surrounding it.

Ignore 'The Bubble' Talk - 3 Reasons Why This is an Excellent Time to Buy Real Estate

Ignore 'The Bubble' Talk - 3 Reasons Why Summer 2015 is an Excellent Time to Buy Real Estate It is common for those who are interested in buying real estate in the near future to tune into news stories about the real estate market, and many may have heard that there is speculation about a real estate bubble that may pop soon. While this gloomy outlook on the real estate market can strike fear in some hearts and may deter a purchase until a later date, the fact is that this is an excellent time to purchase property. In fact, there are three good reasons why potential buyers may want to start moving forward with their buying plans soon.

Low Interest Rates

Most who have plans to purchase real estate will need to apply for a mortgage loan to complete their transaction, and today's low interest rates are highly competitive. Low interest rates make the cost of borrowing money to purchase real estate lower, and this means that the mortgage payment that may be locked in may be lower. There is some speculation that interest rates will rise in the coming weeks or months, and this means that now may be a great time to take advantage of lower interest rates

Great Deals Available

More than that, there are some great real estate deals available for buyers to take advantage of. Real estate values in many areas have rebounded in recent years, but some areas are still off historic highs. In addition, there may be foreclosures, short sales and other types of transactions that can result in buyers saving money on their property purchase.

The Benefits Of Home Ownership

Another benefit associated with making a purchase now is that home buyers can start enjoying the financial benefits of home ownership sooner. These benefits include the ability to build equity through debt reduction and value appreciation as well as tax benefits associated with owning property. These are benefits that can have a true impact on a person's financial situation, and it may be financially advantageous to have access to these benefits sooner rather than later.

There will always be speculation about what the real estate market may do in the coming weeks, months and years, but it is impossible to accurately determine how the market may act. With this in mind, it may be best for buyers to take advantage of currently great market conditions rather than attempt to time the market in the future. Home buyers can get more information about market conditions by speaking with their trusted real estate professional.

Monday, September 14, 2015

What's Ahead For Mortgage Rates This Week - September 14, 2015

Whats Ahead For Mortgage Rates This Week September 14 2015A short week after the Labor Day Holiday provided a slack schedule for economic news. Bloomberg reported that residential investment for the second quarter of 2015 represented 3.34 percent of the Gross Domestic Product. Compared to the long-term average reading of 4.56 percent, analysts said that the Q2 15 reading suggested pent-up demand in the housing market that could help propel the economy through any setbacks that could occur when the Fed raises rates.

Pent-Up Housing Demand a Plus when Fed Raises Rates

Job openings rose in July to 5.75 million as compared to June's reading of 5.32 million. This is a positive indicator for the economy and for the housing sector, as consumer confidence in terms of buying a home typically relies on stable employment and a strong labor sector.

While economic indicators are looking good for housing construction, analysts note that a shortage of construction workers could affect construction of new residential units. Analysts said that children born during the 1980's will lead the next wave of first-time home buyers, with millennials following. This trend could last for the next 10 to 15 years and is expected to bolster housing markets.

More lenient mortgage lending requirements and rising confidence among home builders were also cited as positive indicators for housing.

Mortgage Rates Mixed

Freddie Mac reported that average fixed mortgage rates rose by one basis point to 3.90 percent for 30-year fixed rate mortgages and 3.10 percent for 15-year mortgages. The average rate for a 5/1 adjustable rate mortgage fell by two basis points to 2.91 percent. Average discount points for a 30-year fixed rate mortgage were unchanged at 0.60 percent and rose to 0.70 percent for 15-year fixed rate mortgages and to 0.50 percent for 5/1 adjustable rate mortgages.

Job Openings Rise as Weekly Jobless Claims Fall

July job openings rose to 5.75 million from June's reading of 5.32 million; this was the highest number of available jobs since records have been kept. Analysts said that the high number of job openings clearly indicate that the labor force is not able to supply the workers needed by employers. Jobs available range from professional to service related work; this suggests a universal trend rather than hiring challenges within specific job areas.

Hiring activity fell in July to 4.98 million from June's reading of 5.18 million. July separations also fell, which suggests that employers are having problems finding skilled workers and are holding on to experienced workers.

Weekly jobless claims fell to 275,000 from the prior week's reading of 281,000 new jobless claims.

What's Ahead

Next week's scheduled economic reports include Retail Sales, Consumer Price Index and Core CSI along with the NAHB Wells Fargo Housing Market Index, Commerce Department reports on housing starts and building permits. The Fed's Federal Open Market Committee will issue its customary statement on Wednesday, followed by highly-anticipated press conference by Fed Chair Janet Yellen.

Friday, September 11, 2015

Selling Your Home? 3 Mobile Apps That Will Help Make Your Next Move Much Easier

Selling Your Home? 3 Mobile Apps That Will Help Make Your Next Move Much EasierMoving is stressful. Don't worry. There is an app for that. Technology makes moving easier than ever. Here are three mobile apps that help sellers manage their moves efficiently and with minimum stress.

App One: Move Advisor

First on the list is Move Advisor. This app not only received top reviews from users, it is free. The easy-to-use interface walks sellers through the moving process with four features.

Move Advisor provides users with a comprehensive moving timeline, a home inventory checklist, a moving company locator, and a moving quote.

The moving timeline lets users put in their moving date and any other information. The app then creates a personalized to do list. Each week is broken down into tasks to ease stress and prevent last minute panic.

The home inventory helps itemize the household. The app allows users to easily map out their homes room by room. The app keeps track of what needs to be moved, the volume and weight of the shipment, and how many boxes, furniture blankets, and moving vehicles are needed to move.

Finding a mover is easy with this app. It provides a list of local movers and quotes to make the selection process stress free.

App Two: My Move

My Move is another free app that streamlines the moving process. It focuses on informing users about what to expect from a move, finding a moving company, and properly organizing the move.

Information is invaluable. The app provides access to blogs about moving as well as an in-depth article about what to expect from a move on the app homepage.

The professional relocation assistance searches the top moving companies by state or name and includes reviews to help users make informed decisions. The quote process is as easy as a few taps of a finger. The relocation checklist is easily customized and straightforward, simplifying the packing process.

App Three: State Farm Move Tools

State Farm insurance company offers a highly interactive and visually appealing moving app designed to provide organizational assistance during the move. It comes with a to-do list, a packing tool, a label tool, an inventory, and many helpful moving tips.

Moving is easy with these three apps. Simplify the moving process by downloading one or all today. For more useful tips, contact a real estate agent for professional advice about moving, buying, and selling a home.

Thursday, September 10, 2015

A Step-by-Step Guide to Preparing Your Finances for the Mortgage Pre-Approval Process

A Step-by-step Guide to Preparing Your Finances for the Mortgage Pre-approval ProcessBeing pre-approved for a mortgage isn't just a way to get a step ahead, in many cases it's a necessity to buying a home. Many sellers don't want to go through the negotiation process of selling their home only to have the buyer drop out when they can't get approval for the mortgage they were relying on.

The Difference Between Pre-Qualification And Pre-Approval

Pre-qualification is a faster process than pre-approval and is usually a best estimate based on how the borrower answers certain questions about their financial history and status.

Pre-approval is way more valuable to a borrower than pre-qualification because it is a commitment from a lender for a decided amount after they have completed an in-depth verification process based on the submitted documentation.

Preparing For The Pre-Approval Process

The majority of lenders will require the same documentation in order to pre-approve anybody for a mortgage, but there is more information they will need in certain cases.

Anybody applying for a pre-approval will need to ready at least two years' worth of financial information, including W-2s, Form 1099s and federal tax returns as well as current banking and financial records.

Here is where the pre-approval process gets more in-depth, not only will the lender need to see how much money the applicant has in their bank, but they will need proof as to where the money came from. The lender will need to know the difference between income, gifts or investment withdrawals to help them make their decision.

Having this information ready in advance will speed up the process significantly

Prepare Proof Of Assets And Allow A Credit Check

Applicants will be required to prove ownership of all assets and will need a letter to prove that any cash gifts given to them to assist with the payment are not loans that need to be paid back. This is important information that will help a lender make a decision, so having the letter ready will save a lot of time.

The lender will also need to check the applicant's credit to compare it to the applicant's income. Many people refuse the credit check because they are afraid it will impact their credit score, but the impact is very low and the lender needs this information. It is also a good way to learn about any errors in the credit report early, before they can pose a problem down the line.

The process is not nearly as intimidating as it appears, and an experienced real estate agent can help you prepare everything you need well in advance of applying for pre-approval.

Wednesday, September 9, 2015

The Ultimate Guide to Getting the Most Value from a Home Inspection

The Ultimate Guide to Getting the Most Value from a Home InspectionOne of the most stressful parts of selling a home is the dreaded home inspection. Getting the most value from a home inspection is crucial, especially since any missed item can cause a significant amount of trouble a few years or decades down the road. With that in mind, let's take a look at a few tips on how one can get the most value from a home inspection.

Keep Calm And Inspect On

Having a stranger poke around every corner of a house with a microscope is frustrating. Homes have emotional value and no one wants to hear about their homes' flaws. The key to a successful inspection lies in remaining calm. Getting angry and or arguing with an inspector is a sure way to lose money.

Stay calm, smile, and accommodate the inspectors. The payoff is worth it.

Understanding The Process

Buyers depend on home inspections to protect them from purchasing a money pit. They want to know what they are getting into. This means that the buyer hires the inspector, not the seller. The seller must do everything they can to present a good face to the inspector because the inspector is not on their side. Inspectors investigate every aspect of a home from the roof to the yard. They look for problems that require immediate address and problems that might arise down the road. Negotiations take place once the buyer receives the inspection report.

Good Presentation

Home inspections are rather like selling the house all over again. Take the time to dress for success. First impressions are very important when it comes to any sale. Dress nicely and act politely. Clean up the home. Touch up areas that need new paint and put some new flowers in the garden. Repair minor problems like loose gutters, faulty steps, and trim work. Make the inspector work to find problems instead of providing obvious issues.

Update The Indoors

Most homeowners are aware of what needs to be done. The time to take care of existing issues is before the inspection. Get electrical systems and heating and cooling systems tuned up by a professional. Take care of minor roof repairs. Address any plumbing issues. Not only does this save sellers money during negotiations, it also shows that they take good care of their home and can go along way towards getting the best price for the home.

The best way to get the most from a home inspection is to talk with an experienced real estate agent. The next best way is a good presentation and addressing known issues prior to inspection. Inspectors look more closely at homes with obvious problems than homes that appear to be well taken care of. Don't wait. Start preparing for your inspection today.

Tuesday, September 8, 2015

What's Ahead For Mortgage Rates This Week - September 8, 2015

Whats Ahead For Mortgage Rates This Week September 8 2015Last week's economic news included reports on construction spending, private and public sector employment data and a report from the Fed indicating that any move to raise interest rates may be delayed. The details:

Construction Spending Meets Expectations, Beige Book Indicates Wage Pressures

Analysts said that construction is gaining strength and could soon be the strongest sector of the economy. Construction spending for July met growth expectations of 0.70 percent as compared to June's reading of 0.10 percent. The Commerce Department reported that this reading translated to a seasonally adjusted annual rate of $1.98 trillion, which was the highest rate of spending in the construction sector since May 2008.

Residential construction spending was up 10.80 percent year-over-year in July, with both single-family and multifamily construction posting double digit gains.

The Federal Reserve issued its Beige Book report last Wednesday, which indicated that wage pressures in many of the 13 Fed districts could cause rising inflation, which the Fed has cited as a component in any decision to raise the federal funds rate. The Fed has set a benchmark of 2.0 percent inflation as an indication for raising rates, but doesn't expect to see this reading in the short term.

Higher wages increase consumers' discretionary spending, which would contribute to more hiring and increasing demand for goods and services.

Mortgage Rates, Weekly Jobless Claims Higher

Freddie Mac reported that average mortgage rates rose across the board last week. The rate for a 30-year fixed rate mortgage rose by five basis points to 3.89 percent; the rate for a 15-year fixed rate mortgage wash higher by three basis points and the rate for a 5/1 adjustable rate mortgage also rose by three basis points to 2.93 percent. Average discount points were unchanged at 0.60 for fixed rate mortgages and 0.40 percent for 5/1 adjustable rate mortgages.

Weekly jobless claims rose to 282,000 new claims against last week's reading of 270,000 new claims and expectations of 275,000 new jobless claims. While this was the highest reading for new jobless claims in since late June, the reading for new weekly jobless claims has remained below the 300,000 benchmark for the last six months.

The four-week rolling average of new jobless claims rose by 3250 new claims to an average of 275,500 new claims. Analysts said that layoffs are declining and that workers who lose their jobs are finding new employment quickly.

Continuing jobless claims fell by 9000 to a reading of 2.26 million for the week that ended August 22.

ADP Employment Rises, Non-Farm Payrolls, National Unemployment Rate Fall

Private sector payrolls increased by 190,000 jobs in August as compared to July's reading of 170,000 jobs according to ADP. This supports the trend of stronger hiring seen by economists in recent weeks. The government reported that Non-farm payrolls, which include public and private sector jobs, fell to 173,000 jobs against July's reading of 245,000 jobs.

The Commerce Department reported that the national unemployment rate dipped to 5.10 percent in August against expected reading of 5.20 percent and July's reading of 5.30 percent. The declining unemployment rate further supports economic growth and stronger labor markets.

What's Ahead

This week's economic reports include job openings, the usual weekly reports on new jobless claims and mortgage rates and a report on consumer sentiment.

Friday, September 4, 2015

Staging 101: How to Improve Your Landscape and Gardens Before Showing Your Home

Staging 101: How to Improve Your Landscape and Gardens Before Showing Your HomeCurb appeal is often neglected by sellers. So much attention is spent getting the inside of a home cleaned up that the outside is left until last. This is a mistake. Landscaping and gardens are the first things a prospective buyer sees. Following these tips ensures homes look their best and give a positive first impression.

Spruce Up Mulch

A fresh layer of mulch brings out the color in a garden and makes gardens look well-tended. Homes on the market in the spring, summer, or fall benefit from a fresh application of mulch prior to putting a home on the market.

Clean Up

Cluttered yards full of toys and tools are unattractive. Pick up any clutter and place it out of sight of prospective buyers.

Branches, leaves, and other debris are equally unsightly. Rake leaves and eliminate brush to give lawns a clean, manicured appeal. This is important year round.

Renting a power washer to clean driveways and walkways is also advisable. A clean driveway and gleaming walkways invite prospective buyers to picture themselves strolling through the yard.

Trim Grass And Shrubs

Overgrown grass and shrubs look unkempt. Take the time to cut the grass and sweep or blow the clippings off of driveways and walkways. Trim shrubs and trees to desired shape and height, and clean up all trimmings.

Don't worry about trimming out of season. Well-manicured landscapes suggest that the rest of the house is equally well maintained.

Fresh Plantings

Add a little color in the garden to increase its appeal with some fresh flowers. A new planting ensures blooms look their best, especially against that new application of mulch.

Tend To All Garden Beds

This is the time to spruce up all garden beds. Remove weeds and trim up perennials to create a well-maintained appearance. Remove or trim back any plants that look dead or otherwise unhealthy

Address Water Issues

Yards with fountains, faucets, pools, and irrigation systems require additional care. The time to fix issues is before the showing.

Resolve any issues with irrigation systems. Clean fountains and pools of algae and leaves. Fix leaky faucets as they suggest issues elsewhere with plumbing.

Fixing up the outside is just as important as a clean interior. Making gardens, lawns, and landscaping appear attractive and well maintained gives prospective buyers a positive first impression.

Don't wait until the day of the showing. Start working on landscape staging a month before putting a home on the market. Call your trusted real estate agent today for more staging tips.

Thursday, September 3, 2015

3 Reasons Why the Cost of Title Insurance is Worth the Investment

3 Reasons Why the Cost of Title Insurance is Worth the InvestmentTitle insurance is one of the few types of protection policies available to homebuyers and one that is often overlooked because of its optional nature.

Because title insurance is purchased simultaneously with the home, it can be very easy to forego when looked at alongside all the additional fees that are associated with purchasing property.

This is typically not advisable, as title insurance is one of the smartest forms of protection a homeowner can buy. Here are just three reasons why every purchaser should get title insurance.

It's The Best Protection Against Fraud

Title insurance protects the owner of a home from any claim made against their property, whether or not they are responsible. These include unpaid mortgage balances on the home, an improper foreclosure or any form of real estate fraud perpetrated by the seller.

Fraud is more prevalent now than ever before and has started to gain momentum in real estate as well. Forgeries are easier to create in the electronic age and criminals take advantage of today's 'do-it-yourself' attitude to sell property they don't actually own to unsuspecting victims.

The Insurer Performs An Exhaustive Title Search

Countless records are now made public online for low one-time payments to access them. But does anybody really know what they should be looking for? Title insurers are experts at finding anything suspicious with a home and researching exhaustively to make sure everything about the transaction is legitimate.

And if it's not, the insurance still covers the buyer for any losses incurred if they are ordered out of their new home should a claim be made against it. Then they will research the claim to make sure it isn't a fraudulent one.

Title Insurance Is A One-Time Fee

Although it is a large fee, title insurance only needs to be paid for once. Unlike other insurance policies that are either monthly or annually, title insurance is a one-time fee that is acquired at the time of closing. Most mortgage lenders require that their title insurance policy is paid for by the borrower anyway, so it's not a giant leap to take out your own policy the same time.

Title insurance will also protect against mortgage fraud or any unpaid mortgages the home already has. Although title insurance is strongly recommended, it is a good idea to speak with a professional about it so that any questions you have may be answered.

Wednesday, September 2, 2015

Selling Your Home? Here's Why You'll Want to Invest in Professional Photography

Selling Your Home This Summer? Here's Why You'll Want to Invest in Professional PhotographyWith all of the time and money that can go into moving, spending money on one more thing can seem like a bank account drain. However, when it comes to selling your home, investing in a professional photographer can mean the difference between getting a buyer and making a sale you'll be proud of. If you want to get the deal your house deserves, you might want to consider the skills of a professional who will make your house look like someone's dream home.

"Lighting" Up Your House

If you've ever noticed how dull a room can look when it's cloudy outside, you'll quickly realize how important the right lighting can be in complimenting the appearance of your house. A professional photographer will be able to determine what hours and what types of flash will work to highlight the rooms in your house the best. Not only that, they will go above and beyond what your smart phone can do to correct the issues that can impact a potentially perfect picture.

Capturing The Perfect Panorama

In the right light, it's possible that you'll be able to get some great pictures of your house on your own, but a photographer will be able to go beyond that. It's a proven fact that people are most often lured in by façade photos when searching for homes online, and it's these the right photographer will be able to perfect. By using a professional who understands what size of lens to use to compliment your home, your photos will easily optimize the way your home looks.

Diving Into The Details With Expertise

Beyond the panorama shots that might convince a potential buyer into considering your house for their next home, a professional photographer may be able to hone in on details that differentiate your house from the rest. With their keen, curious eye, they'll not only notice intricate details, they'll be able to highlight them in a way that makes them look interesting, expert and one-of-a-kind. They'll also be able to beautifully capture the special features that you love about your home!

It can be tempting to be cost effective when it comes to showcasing your home, but just like wedding photographs, you don't want to skimp on real estate images. If you're interested in learning more about positive ways you can highlight your home, you should contact your local real estate professional for more information.

Tuesday, September 1, 2015

The Top 5 Home Features That Buyers Are Hunting For This Fall

The Top 5 Home Features That Buyers Are Hunting for this AutumnWhether you're getting prepared to buy a new home or just curious about upcoming trends in housing, there are a bevy of features gaining momentum on the real estate market. From top to bottom and room to room, here are five popular features that homebuyers will be sure to notice this fall.

Bigger Is Not Necessarily Better

There was a time when a bigger home meant a better home, but with the cost of maintenance and heating, bigger homes are experiencing a decline in popularity. Instead of sizeable mansions that look the part, buyers are becoming more interested in houses that are more economical to maintain and possess a warmer, cozier vibe.

A Modern, Up-To-Date Kitchen

Where a living room and a bedroom can often be fixed up with a layer of paint, the costs that can go into updating an old kitchen can be quite prohibitive for a new buyer. Instead of a space they'll just have to renovate, buyers are interested in a sleek, modern looking kitchen with stainless steel appliances that offer modern conveniences.

Energy Efficient And Environmentally Friendly

While older homes can offer character and the history that goes along with them, new homes are winning when it comes to energy efficiency. With people becoming more conscientious of the environment and their impact, energy efficiency in a home is not only popular right now, but will come to be a necessity in the next few years.

Options For A Smart Home

Technology has become so ubiquitous these days that it makes more sense for buyers to invest in homes with smart features. From thermostats that can be adjusted with mobile devices to doors opened via Bluetooth, smart features are a huge part of what makes a modern home.

A Burst Of Bright Color

Muted tones can often be the best for allowing a potential buyer to envision a home as their own, but color here and there can definitely draw in the younger crowd. With bright color making a design comeback, a brilliantly bold sink or appliance can be the type of risk that pays off and has the potential to sway the right kind of home seeker.

The features that grab a potential buyer can change all the time, but certain popular trends will not be going out of style anytime soon. If you're curious about trends that will be hitting the market in your area, contact your trusted real estate professional for some inside tips.