Mar 30, 2016 | Around The Home
Whether or not you’ve been looking into selling your house for a while, there’s a good chance you’ve heard the buzzword ‘renovation’ and considered how it can positively impact the value of your home. From upgrading your kitchen to painting, there are plenty of renovations that will do wonders in terms of your property’s price on the market, but there are a few that can actually have the opposite effect so you’ll want to be leery of the following fix-ups.
Cool Colored Tile
If, at one point, you installed a bunch of brightly colored tile into your living room or kitchen to add a bit more life to your home, it’s possible this is the type of renovation you may come to regret upon resale. Often times, when it comes to purchasing a home, buyers will be looking for something they won’t have to renovate right off the bat, so a flashy feature can have a marked effect on the selling potential of your house.
An Unflattering Paint Color
You’ve probably heard all about the power that painting has to revamp the look of your home, but the wrong tint of paint can actually have the completely opposite effect. Instead of opting for bright or risky colors, ensure you stick to neutrals that will coordinate in a flattering way with your furniture and flooring. A bright color can certainly make for a memorable impression, but it can also obscure many other good features if it happens to be too much.
Adding On Another Bedroom
It can often be considered a great benefit to have a house with multiple bedrooms. However, if you’ve condensed the size of one room to create an extra bedroom that’s little more than miniature, it may not have the impact on your price-point you envisioned. Instead of focusing on the house that you don’t have, play up the positive features of your home and the ideal buyer will come to you – and hopefully with the offer you’re looking for.
Renovating your home is a good idea if you’re planning on putting it on the market, but adding on another bedroom or choosing a garish color of paint might not be worth the cost you’re going to pay. If you are planning on putting your home on the market in the near future, you may want to contact one of our local real estate professionals for more information.
Mar 29, 2016 | Home Mortgage Tips
Credit is of considerable concern when it comes to buying a home, but if you’re on the market for a new place in the next few months there may be some timely news that applies to you. If you haven’t heard about the changes to the Federal Housing Administration’s (FHA) credit score minimum, here’s some information on the recent reduction and how it may impact your home purchase.
Information On The FHA
Started in 1934, the FHA is the organization responsible for insuring the loans that are available to homebuyers in the United States. These loans are not provided directly by the FHA, rather the FHA serves as the insurer for the loans that are leant by financial institutions of the United States. While there are a number of guidelines that must be met by borrowers in order to ensure the FHA will back their loan, a lowered mortgage minimum credit score means that those with a less-impressive credit profile may have a better opportunity for home ownership.
The Minimum Credit Score Reduction
The strength or weakness of your credit history has a significant impact on whether or not you will qualify for a mortgage or even pre-approval, so for those whose credit has suffered the recent drop in the minimum will be good news. Previously, the FHA required a score of 640 so that a borrower could be approved for a mortgage, but the reduction by 60 points to a credit score of 580 means greater possibility for those who might fit into a lower credit category.
A Lower Mortgage Minimum And The Market
With the opportunity for home ownership that will be opened up to potential buyers, there is a strong possibility that the market will experience a noticeable shift. Many millennials are poised to enter the real estate market this year, and with more people considering a house as a result of a reduction, there could be an increased demand in housing purchases. While the prices in rural areas have been dropping off, the housing in metropolitan areas may experience a sizeable upsurge.
With the reduction of the mortgage minimum credit score by the FHA, there are likely to be some shifts in the real estate market in the coming year that will affect demand and price. If you’re on the market for a new home and are interested in a purchase that will align with your finances, you may want to contact your local real estate professional for more information.
Mar 28, 2016 | Financial Reports
Increasing Home Prices Good For Sellers
The National Association of Realtors (NAR) reported lower sales of pre-owned homes in February. Would-be buyers were discouraged by rapidly rising home prices. Short supplies of available homes sidelined potential buyers as higher home prices and cash buyers squeeze out buyers who need mortgages to buy homes. Multiple offers resulting in bidding wars have also deterred buyers in high demand markets. According to NAR’s February report, sales of existing homes fell 7.10 percent to their lowest level since November.
NAR has predicted that rapidly rising home prices would eventually damage housing markets. While analysts weren’t certain whether February’s report indicated a temporary lull due to weather and anomalies related to new closing regulations and seasonal influences, NAR Chief Economist Lawrence Yun said, “The main issue continues to be a supply and affordability problem. Finding the right property at an affordable price is burdening many potential buyers.”
During the housing bubble, buyers jumped into the market as speculators or to buy before home prices increased beyond their reach. NAR surveyed renters last week and found that the percentage of renters who believed that it’s currently a good time to buy a home decreased.
Respondents to Fannie Mae’s February Home Purchase Sentiment Index forecasted a 1.70 percent increase in home prices year-over-year. One year ago, respondents expected home prices to increase by 2.50 percent year-over-year. This may suggest that home prices are cooling. This can be expected as the number of buyers declines as home prices become increasingly unaffordable.
New Home Sales Up in February
New home rose in February according to the Commerce Department. Based on a revised reading of 502,000 new home sales in January, February’s reading was 2.00 percent higher than January’s reading, but was 6.10 percent lower than for February 2015.
Builders have held back on increasing construction due to concerns about ups and downs in the economic recovery. Short supplies of labor and available land have also kept home builders from meeting current demand.
Mortgage Rates Trend Lower
According to Freddie Mac, average mortgage rates fell across the board last week. The rate for a 30-year fixed rate mortgage fell by two basis points to 3.71 percent; the rate for a 15-year fixed rate mortgage fell three basis points to 2.96 percent and the rate for a 5/1 adjustable rate mortgage fell four basis points to 2.89 percent.
New jobless claims rose to 265,000 from the prior week’s reading of 259,000 new claims. Last week’s reading matched analyst expectations.
What‘s Ahead This Week
This week’s scheduled economic news includes reports on inflation, pending home sales, Case-Shiller’s Home Price Index reports and government and private sector employment data. Weekly reports on mortgage rates and new jobless claims are also scheduled.
Mar 25, 2016 | Around The Home
For those who love to decorate and are always excited to test out the latest trends in design, the accent wall is a concept that’s become popular in recent years. If you’re not sure how to use this feature to twist any room on its side, here’s how to go about painting your very own and instantly dressing up the look of your favorite room.
Pick The Perfect Wall
When deciding on the ideal location for an accent wall, it’s important to consider which space in your home will benefit from a splash of color and still be complimented by this unique look. Whether you decide on a wall in your bedroom or living room, the location of your accent wall should be somewhere it can have a positive impact on the look of your room without overpowering its natural ambiance.
Decide On A Color You Can Live With
Once you’ve picked the perfect place for your paint, you’ll want to narrow down the list of color options to ones that will work best for the wall. It can be tempting to go from the most brilliant of colors to really indulge in accent, but think of this wall as a way to merely boost the look of a room you already enjoy. By choosing a color that is both vibrant and understated – and goes with your design aesthetic – you can use this wall to maximum, nuanced effect.
Any Additional Accents?
If you’re just wading into the water with home decorating, it’s entirely likely that an accent wall will be enough for now, but if you’re just beginning you may want to consider some other interesting design details as well. While you could choose more than one color to brighten things up or draw a makeshift frame around the border of each wall, if you’re interested in something funky you may want to use some stencils – like hearts or stars – to instantly add a whimsical effect!
There are no hard and fast rules when it comes to home decorating, but if you’ve been considering an accent wall for a while you might want to test it out first before diving in with neon colors and funky stencils. If you’re making some changes to your home because you’re thinking of selling in the next few years, you may want to contact one of our local real estate professionals for more inside information.
Mar 24, 2016 | Home Seller Tips
There are many factors to consider when it comes to selling your home, and if you own your home with someone else the details involved can be even more confusing. If you’re wading into your co-ownership options and are curious about your next steps, here’s a short list of some things to think about.
Buyout: Selling Your Half
If you own your home with a friend, family member or former partner who would like to keep the property, the first thing you’ll want to do is contact an appraiser who will provide you with the market value of your home. Once you know this amount, you can discuss it with your co-owner and decide on the amount they can pay you for a buyout. While some co-owners will decide to get a loan and pay a lump sum, they may also want to schedule monthly payments until the buyout amount is completely paid off.
Partition Sale: Leave It To Legal
In the event that both you and the co-owner of your home would like to get rid of your property without any fuss, you have the option of a partition sale which means that the court will take care of your property sale for you. Once this occurs and any fees are paid, the total purchase price that is made from the home will be divided between the co-owners and the property will no longer be an issue for either party. If one owner has invested more into the home, it’s possible that one party may benefit more than the other.
Voluntary Sale: Coming To An Agreement
There are many situations involving property and personal possessions where the fence cannot be mended, but in the event that you want to sell your portion of a property it is in your best interest to sell together. While a partition sale provides the opportunity to get the property off the co-owner’s hands quickly, there’s a good chance that some of the money earned will be caught up in legal fees. If you’re able to come to an understanding, you may both reap a larger sum.
Whether you’re moving on to the next chapter of your life or experiencing a settlement, there are many available options for selling a home that is co-owned. If you’re considering putting your co-owned home on the market, please contact one of our real estate professionals for more information.
