Jan 22, 2016 | Home Seller Tips
Small backyards are not the detriment that sellers seem to worry about. By putting in some work, any homeowner should be able to turn the smallest backyard into a selling feature by highlighting its assets.
Here are some surefire ways to change a cramped backyard into a cozy, outdoor paradise:
Invest In Size Appropriate Outdoor Furniture
Too many people with small backyards make the mistake of picking out patio furniture that is meant for a larger space. While this may not matter for the people living in the house, it will make a world of difference to anybody looking to buy.
Large furniture will make the yard look even smaller and cramped by comparison. Patio furniture is made in all shapes and sizes, and picking out smaller pieces to use in the backyard will make the space look larger and help play to its strengths.
Open Spaces Ignite The Imagination
Too many sellers go overboard in the staging process and end up with a result that has the exact opposite effect. While a fire pit or a water feature will add value to the home, in a small backyard these features can be cumbersome if they are all used simultaneously.
Focus on one or two signature areas, a seating area, water feature or barbeque are good examples, and keep the rest of the yard open and clear so that it looks larger and the buyers can imagine what they could do with the space. Many young couples are looking for a home to raise kids in and a clear backyard helps them visualize the space children have to play.
Treat The Backyard The Same As The Front
While curb appeal is important, it’s easy to forget that the same rules should apply to other outdoor areas of a house. Considering a yard is high on the list of criteria buyers look for in a new home, especially those starting a family, the backyard should be given the same treatment as the front yard.
Remove clutter, weed the gardens, trim the trees and put away any toys, tools or grills that are not part of the staging to keep visitors’ eyes drawn to the actual yard and not lingering away to something unsightly that wasn’t cleaned up.
With enough work and imagination, there are ways to make any perceived drawback into a selling point. Any real estate professional will be able to look through your home and help identify trouble areas and how to fix them.
Jan 21, 2016 | Home Buyer Tips
There can be many downsides to both renting and buying, depending on what side of the coin you are on, but if you’re leaning towards purchasing a home it can have added benefits for your bank account that renting does not. While renting can certainly alleviate many of the costs that go along with property ownership, here’s why purchasing a home can have positive monetary affects in the long run.
The Good Impacts of Inflation
While inflation is often seen as a dirty word, a real estate purchase can see the positive side of inflation with how your home purchase investment will grow over the years. Putting money into rent will mean that money is gone and out the window once you’ve paid for the month, but investing into a property will come back to you in future gains that are made in the real estate market. While buying a home will be more expensive in the short term, it can also provide you with greater financial flexibility and equity in the future.
Renovations Will Increase Home Value
While changing up the bathroom or the paint on the wall in your apartment isn’t going to add any extra lining to your wallet when you move out, making upgrades to a home that you own will have the very opposite effect! Renovations can certainly be unpopular while they’re taking place, but no matter how small or large, they can mean an easier sell and a higher profit when the home finally goes on the market.
The Opportunity For Rental Property
An apartment you rent won’t offer opportunity for investment if you’re away from your home for an extended period of time, but a home you own may serve as an ideal investment property at some point in the future. With the success of Airbnb and unique modern housing needs that may only require a home rental for a short period of time, being able to use your house as a rental property can be a significant boon for earning money you would have otherwise been without.
Buying a home can require a lot of number crunching in the beginning that rent does not, but it can also provide significant financial benefits down the road that might not exist without such a purchase. If you’re considering purchasing a home in the near future, you may want to contact your local real estate professional for more information.
Jan 20, 2016 | Market Outlook
Home builders maintained December’s confidence level according to the National Association of Home Builders (NAHB) Housing Market Index for January. The latest reading of 60 mirrored December’s reading, but was two points lower than expected. Readings of more than 50 indicate that more builders were confident about housing conditions than those who were not.
Although January’s reading fell shy of October’s reading of 65, which was a ten-year high for the home builder index. Any reading in the low 60’s suggests gradual improvement in housing market conditions according to NAHB. While December’s year-over-year reading for new home sales was 14 percent higher than in December 2014, home builders cited industry challenges including cost of new lots and a scarce labor force. The Fed’s recent rate hike may have influenced builder confidence as higher mortgage rates would sideline some buyers.
National unemployment reached a seven-year low, which is pushing wages upward. Labor market readings are important to would-be home buyers, who typically need to be confident about jobs before investing in a home. Demand for homes continues to drive new home prices up and contributes to home builder confidence levels. The flip side of high demand is that rising home prices can price some would-be home buyers out of the market.
Components of Housing Market Index Mixed
The NAHB Housing Market Index readings are based on three components. January’s readings were mixed. Builder confidence in current market conditions rose two points to 67, but builder confidence in market conditions over the next six months slipped three points to 63. Builder confidence in buyer traffic in new home developments slipped two points to 44; this was likely due in part to winter weather.
In related news, the University of Michigan released January’s Consumer Sentiment Index last week. Consumer sentiment rose from December’s reading of 92.60 to 03.30 and surpassed the expected reading of 93.0. Low inflation drove consumer confidence according to analysts. Low wage gains were offset by falling inflation rates. Strong consumer confidence readings suggest that more home buyers could enter the market as worries about economic conditions ease.
Jan 19, 2016 | Market Outlook
In addition to weekly reports on mortgage rates and new unemployment claims, last week’s economic news included the Fed’s Beige Book report, retail sales and consumer sentiment. January’s Empire State Index showed an unexpected dip and Consumer Sentiment increased for January.
Fed’s Beige Book Shows Diverse Economic Trends
According to the Federal Reserve’s Beige Book report for January, the central bank’s business contacts reported strength in housing, while agriculture, energy and manufacturing sectors were struggling. New York’s Empire State Manufacturing Index for January supported this trend with a sharp drop. New York manufacturing has hit its lowest level since the recession and has stayed in negative territory since March 2009. Two analysts said that the Fed’s recent rate hike and subsequent hikes could slow housing markets. Consumer lending rates, including mortgage rates, typically follow suit when the Fed increases its target federal funds rate.
In other news, retail sales posted negative growth of -0.10 percent in December against an expected reading of -0.20 percent and November’s reading of +0.40 percent. December retail sales not including auto motive also posted a reading of -0.10 percent as compared to expectations of +0.20 percent and November’s reading of 0.30 percent.
Mortgage Rates Fall, New Unemployment Claims Rise
Last week’s average mortgage rates fell across the board according to Freddie Mac. The average rate for a 30-year fixed rate mortgage dropped by five basis points to 3.92 percent; the average rate for a 15-year mortgage rate also fell by five basis points to 3.19 percent. The average rate for a 5/1 adjustable rate mortgage was eight basis points lower at 3.01 percent. Average discount points were 0.60, 0.50 and 0.40 percent respectively.
New unemployment claims rose to 284,000 against expectations of 275,000 new claims and the prior week’s reading of 277,000 new claims. Analysts said that the jump in claims resulted from job losses related to temporary holiday positions, but noted that last year’s momentum of falling jobless claims has slowed.
Last week’s economic news ended on a positive note; consumer sentiment rose according to the University of Michigan. Lower prices were credited for the boost in consumer confidence in current economic conditions.
What’s Ahead
This week’s scheduled economic events include the National Association of Home Builders Housing Market Index, Housing Starts, Consumer Price Index and Core Consumer Price Index. No news will be released on Monday due to the Martin Luther King holiday.
Jan 15, 2016 | Real Estate Tips
As you’ll see in this video, unless you have a buyer’s agent remember that the agent works for the seller. Make a point of asking him or her to keep your discussions and information confidential.
Listen to your real estate agent’s advice but follow your own reason on deciding a fair price.
Calculating your offer should involve several factors: what homes sell for in the area, the home’s condition, how long it’s been on the market, financing terms and the seller’s situation.
By the time you’re ready to make an offer you should have a good idea of what the home is worth and what you can afford.
Be prepared for give-and-take negotiation which is very common when buying a home. The buyer and seller may often go back and forth until they can agree on a final price.
