Oct 9, 2014 | Home Seller Tips
Whether you’re in the early stages of the home selling process or your home has been on the market for some time, you may be considering hosting an open houses or two in order to welcome potential buyers in to see your property.
Let’s take a look at three reasons you may want to pass on the idea of open houses in order to invest your time in other areas which may lead to a faster sale.
Most Buyers Start Their House Hunt Online
According to statistics from the National Association of REALTORS®, the majority of home buyers begin their house hunt by browsing through online real estate listings.
If you have had professional photos taken and have a well-designed property listing which highlights the features and amenities in your home, you may find that the time and money you would spend hosting open houses is better spent marketing your listing and conducting private viewings.
There’s Too Many Listings To Tour Them All
Depending on where you live, there is anywhere from a few hundred to tens of thousands of homes on the market at any given time.
The sheer number of houses and condos available makes the prospect of visiting so many open houses seem daunting to many buyers, so many tend to skip this step in favor of booking viewings for homes they’re interested in.
A Virtual Open House Allows Buyers To Tour 24/7
Many real estate websites offer the attach dozens of photos and videos to your listing, essentially offering you the ability to host a virtual “open house” online where prospective buyers can get a feel for your property before deciding if they would like to see more.
If you can provide a buyer with the ability to tour through your home from their mobile phone, there’s little sense in going through the preparation and expense of hosting open houses. Even if you do, you may find that few people decide to show up.
It’s important to note that the best source of advice when selling your home is a professional real estate agent who has experience with homes sales in your area. Contact your local real estate agency before you start the home selling process and they’ll be able to suggest the best approach for marketing your home to interested local buyers.
Oct 8, 2014 | Home Mortgage Tips
Buying a home is a major financial transaction, especially if you’re going to need mortgage financing to help cover the purchase cost.
The only way to know if you’re getting the best deal on a mortgage is to shop around, but with so many different lenders vying for your business it can be very tough to choose which mortgage is the best fit for your own situation.
In this post we’ll share how you can compare mortgages from different lenders or underwriters so that you can get the best possible deal on your mortgage loan.
Start By Comparing Interest Rates
The most important factor in your mortgage is the interest rate that you’ll be required to pay so this should be your starting point.
While most lenders will keep their rates competitive with one another, you may find that there are discounts available based on your credit or financial history. You might also find that some lenders are willing to adjust the rate based on how long of a mortgage term you’ll need, and how much you’re investing in your down payment.
Get An Estimate Of Your Total Closing Costs
While the number that you’re likely focused on is the total monthly payment that you’ll be making for the next few years, you’ll also want to find out how much in fees and closing costs you will have to pay in order to take out the mortgage.
Every lender charges different fees and the amounts can vary wildly, so be sure to get an estimate on these costs to find out how they’ll affect your home purchase.
Watch Out For Early Payment Penalties
Finally, you’ll want to keep an eye out for early repayment penalties as these can cause you a headache later on if you decide you want to pay your mortgage off a bit faster. The ideal mortgage is one that allows you to repay the principal amount at any time without facing a penalty, but depending on the other terms that you require you might need to shop around a bit before you find a mortgage like this.
Oct 7, 2014 | Home Buyer Tips
Are you thinking about buying a new home? Congratulations!
Buying a house, condo or townhouse is an exciting and rewarding time which tends to be a lot of fun. However, along the way you’ll need to make a number of decisions – including whether you want to buy a pre-owned home or one that has been built recently and is brand new.
Let’s take a quick look at some of the pros and cons of buying a new home versus buying pre-owned.
New Homes Tend To Have Fewer Problems
One of the major upsides of buying new is that newly-built homes tend to have very few problems within the first few years of ownership.
While you’ll still be required to make regular maintenance on a new home, when you buy pre-owned you’re buying a house that has seen years or decades of weather and regular wear-and-tear.
New Construction Allows For Customization
If you want to be able to customize certain aspects of your home, it might be better to buy brand new as the builder will be able to incorporate your requests as they’re building the home. Of course, you can always renovate and upgrade a pre-owned home but if you have significant needs you may find it easier to get them built into the home as it’s being developed.
The Major Downsides To Buying New: Cost And Location
While there are a number of upsides to buying new, there are some downsides that you’ll need to know.
First, new homes almost always cost more than an equivalent pre-owned home. Brand new homes are filled with new appliances, fixtures and modern building materials which add to the overall cost of the home. Unless the pre-owned home is on a larger lot or property, you’ll generally be able to save a bit when you buy pre-owned.
Depending on where you’re buying, you may also find that the location where brand new homes are being constructed is much further from the downtown or urban area. In many cities, the only available space for new construction is in suburban areas, which means that you may be in for a lengthy commute to and from work each day if you choose to buy new.
These are just a few of the factors that you’ll need to consider when buying your next dream home. For more information or to get your house hunt started, contact your local real estate agent and they’ll be happy to assist.
Oct 6, 2014 | Market Outlook
Last week’s economic news included multiple reports on housing and the labor sector. The good news is that job markets appear to be stronger, with new jobless claims and the national unemployment rate lower. Unfortunately, housing continues to struggle in its recovery.
Pending home sales slumped in August and the S&P Case-Shiller Housing Market Index reports for July showed slower growth in home prices with 19 of 20 cities posting lower gains than for June.
Mortgage rates were mixed, but remained relatively steady.
Housing Reports Show Slower Price Gains, Suggest Falling Demand
The National Association of REALTORS® released data for August that showed that pending home sales dropped by 1.10 percent to a reading of 104.7 as compared to July’s reading of 105.8. Pending home sales indicate upcoming closings and mortgage loan volume.
Pending home sales fell by 2.20 percent year-over-year. Analysts attributed the drop in pending sales to lower investor participation.
Analysts said that as distressed home sales diminish, mortgage rates and home prices rise, investors are not buying as many homes Regional results showed fewer pending sales in all regions except the West, where pending sales rose by 2.60 percent in August. A reading of 100 in the pending home sales index is consistent with 2001’s average contract level.
S&P Case-Shiller Housing Market Index reports indicated that July home prices gained 6.70 percent year-over-year as compared to June’s year-over-year reading of 8.10 percent. Prices even dropped in San Francisco to its lowest reading since 2012. On a seasonally adjusted basis, July home sales fell by 0.50 percent in July as compared to June’s decrease of 0.30 percent. 19 of 20 cities showed lower rates of price growth in July.
Slower growth of home prices was viewed by analysts as potentially increasing demand for homes provided that mortgage rates stay low.
Construction spending for August fell by 0.8 percent on a seasonally adjusted basis. The good news here is that spending on residential construction dropped only 0.10 percent.
Freddie Mac Mortgage Rates: No Major Changes
According to Freddie Mac’s PMMS report, average mortgage rates were a mixed bag. The average rate for a 30-year fixed rate mortgage dropped by one basis point to 4.19 percent with discount points lower at 0.40 percent. The average rate for a 15-year fixed rate mortgage held steady at 3.36 percent with discount points unchanged at 0.50 percent. The rate for a 5/1 adjustable rate mortgage fell by two basis points to 3.06 percent; discount points rose from 0.40 percent to 0.40 percent.
Lower mortgage rates are seen as a potential stimulus for housing markets as more buyers may be encouraged to enter the market.
Jobs Reports Readings Improve, Unemployment Rate Drops
Job markets are showing signs of improvement according to data on weekly jobless claims and reports released by the Department of Commerce. Weekly jobless claims grew by 287,000 as compared to expectations of 298,000 new claims filed. The prior week’s reading was also higher at 295,000 new claims filed.
The Department of Commerce released its Non-farm Payrolls report for August with more good news. 248,000 jobs were added against expectations of 220,000 new jobs and 180,000 new jobs reported in the prior week. The national unemployment fell below the six percent benchmark in August with a reading of 5.90 percent, which indicates proof that the jobs market is improving.
September’s Consumer Confidence Index suggests that economic conditions continue to concern consumers. The reading for September was 86.0 against an expected reading of 92.3 and Augusts reading of 93.4.
What’s Ahead
There is no scheduled housing news for next week other than Freddie Mac’s weekly report on mortgage rates. Other economic news includes Labor Market Conditions Index, Job Openings, and the release of minutes from the last FOMC meeting, which is expected to reaffirm the Fed’s position that it doesn’t expect to increase the target federal funds rate for a “considerable time” after the Fed concludes its asset purchases this year.
Oct 3, 2014 | Home Mortgage Tips
Whether you’re buying a home for the first time or you’ve decided it’s about time that you upgraded to a larger, more expansive house, if you’re making a real estate purchase you’ll need to be aware of how much you can reasonably afford to borrow in a mortgage. In today’s post we’ll take a look at a few ways that you can analyze your financial situation to help decide how much mortgage you can truly afford.
Prepare An Honest Monthly Budget
The first step in understanding how much of a monthly payment you can afford is to create an honest monthly budget which includes all of your family’s income and spending. Although you won’t have to pay them every month, it’s also important that you include costs that show up irregularly like car repairs, Christmas gifts or tuition bills as these still need to be paid. The more information you can place in your budget, the more accurate your financial picture will be.
Your Down Payment Plays A Huge Role
As you might imagine, the amount you can invest in your down payment plays a significant role in how much mortgage financing you will need. Every dollar that you can place in your down payment today is one less dollar that you’ll need to borrow and pay interest on over the amortization period of your mortgage. Take some time to consider how much you can put down, and see if there’s any way you can bump this figure a bit higher.
What Interest Rate Will You End Up Paying?
Small changes to your mortgage interest rate can have significant impacts on how much you are required to pay back over the life of your mortgage. As you’re shopping around, be sure to consider how long your interest rates are valid for and try to determine the lowest rate you might qualify for. You may also find it helpful to use an online mortgage calculator which can help you to understand how your interest rate impacts your monthly payments.
