Mar 10, 2022 | Home Seller Tips
One of the most common questions homeowners have before listing their home for sale relates to the selling price. Understanding the value of the home is about far more than just comparing the square footage of the space with other homes that have recently sold in the area. While there are many factors that will play a part in a selling price, location is an important factor for several different reasons.
Neighboring Properties
The properties that are located next to the home for sale are critical to the property value. For example, a home that is located next to a park or a beautifully maintained home may have more appeal than a home located next to a strip center or a gas station. Even with homes that are located just a block or two apart, this difference in adjacent properties can have a dramatic impact on properties values.
Safety Concerns
When a home is located in an unsafe area or an area that is riddled with crime, safety concerns can lower property values. Many home buyers will review crime statistics about a location before making a buying decision, and high crime areas are far less appealing to buyers. Properties are ultimately only worth what someone will pay for them, and buyers may overwhelming opt to purchase homes in safer locations unless the sales price is lowered.
Vehicular and Pedestrian Traffic
There are some advantages to being in an area with heavy vehicular or pedestrian traffic, such as if you live in an urban area and are searching for a property that offers this lifestyle. When a home is located in heavily trafficked areas in a suburban or rural location where a quieter way of life is desired, these can be drawbacks that impact the selling price. If one home is located on a busy street corner and another similar home is located a few blocks away removed from traffic, the home with a more desirable location will typically have a higher selling price.
Desirability is often directly related to property location, and homes in more desirable locations will therefore have a higher selling price than those in an undesirable location. For those who are thinking about selling a property soon and who want to learn more about its value, a consultation with your trusted real estate agent can provide you with helpful information.
Mar 9, 2022 | Mortgage
People look at pets as members of their families. They love and cherish them. At the same time, pets do not necessarily go well with rental properties. Even though their owners love them, the property owners generally do not. Pets can damage the property, stain the floors, and scratch up the furniture.
Did you know that 72% of all renters own pets? Therefore, property owners who want to maximize their income need to create pet-friendly rentals to drive up demand. What are the biggest benefits, and what are a few ways to do exactly that?
The Benefits Of A Pet-Friendly Rental
There are several reasons why property owners should create a pet-friendly rental. The biggest reason is that this leads to a more diversified tenant pool. Many people are looking for a property that welcomes pets. If property owners have a rental property that is pet-friendly, they will have more interest, increasing the rent they might charge.
Furthermore, pets are not the most common source of property damage. Adults and children tend to cost far more property damage on a per-month basis than pets. Therefore, property owners should not worry as much about dogs, cats, and other animals damaging their properties.
How To Create A Pet-Friendly Rental
There are a few ways property owners can make their rental properties pet-friendly. First, it is important to think about the floors. Some floors, such as carpet, are not friendly to pets because they stain. Instead, linoleum, vinyl, and laminate floors are friendlier to pets, and they are far easier to clean.
It might also be helpful to invest in pet doors and gates. This makes it easier to divide the property and makes it easier for pets to come in and out.
Consider Asking For A Pet Deposit
Property owners should also consider asking for a pet deposit. It is not unusual to ask for a security deposit, but owners might want to ask for an additional deposit for pets. That way, owners already have the money on-hand if they need to do some extra cleaning or make some repairs after having a pet at the property. Creating a pet-friendly rental can lead to extra income.
Mar 8, 2022 | Real Estate
Buying a house is an exciting time, but homeowners also need to make the best financial decision to meet their needs. One of the biggest decisions potential homeowners will face is how much money to put down.
A down payment is the amount of money that homeowners pay upfront when they purchase a home. Many homeowners believe they need to put down 20 percent; however, this is not always the case. What do homeowners need to know about putting a down payment on a house?
20 Percent Is Not Always Required
The reason why homeowners often believe they need to put down 20 percent is that lenders will often require a 20 percent down payment to avoid paying PMI. PMI stands for private mortgage insurance. If a homeowner puts down less than 20 percent, the lender takes on significant risk if the homeowner defaults. Therefore, the lender may require the homeowner to purchase PMI to protect the lender against the risk of default.
Homeowners might be able to secure a loan with 10 percent down if they are willing to pay PMI. First-time home buyers might be able to secure a home loan with as little as 3.5 percent down if they go with an FHA loan.
The Relationship Between Down Payments And Interest Rates
Homeowners might want to put down more money to earn a lower interest rate. Securing a lower interest rate could save homeowners tens of thousands of dollars over the life of the loan. If homeowners put down more money, the lender doesn’t take on as big of a risk. Therefore, the lender might be willing to charge a lower interest rate.
Work With A Professional
Ultimately, the size of the down payment is one of the biggest decisions potential homeowners have to make. It can take a long time to save up 20 percent for a home, but this is not always required. Homeowners need to know whether they need to pay PMI if they do not put 20 percent down, and they need to understand how the size of the down payment will impact the interest rate on a loan. It is a prudent idea to consult with a professional when deciding how much money to put down for a house.
Mar 7, 2022 | Financial Reports
Last week’s economic reporting included readings on construction spending, written testimony from Fed chair Jerome Powell and data on public and private sector jobs and national unemployment. Weekly readings on mortgage rates and jobless claims were also released.
Fed Chair Hints at Rate Hikes in Written Testimony
Federal Reserve Chairman Jerome Powell indicated that consistent rate hikes of the Fed’s target interest rate range will likely occur throughout this year, but he said that the Fed would proceed carefully. Analysts interpreted Mr. Powell’s remarks to mean that he would limit each rate hike to 0.25 percent but could be higher depending on the pace of inflation.
Inflation rose by 7.50 percent year-over-year in January; this was the highest inflation rate since 1982. Chairman Powell said the Fed wanted to prevent persistent high inflation while promoting sustainable economic expansion and a strong labor market. The war in Ukraine could lead to faster inflation as Russia is the world’s second-largest producer of oil.
Mortgage Rates, Fall, Jobless Claims Mixed
Freddie Mac reported lower average mortgage rates last week as the rate for 30-year fixed-rate mortgages fell by 13 basis points to 3.76 percent. Rates for 15-year fixed-rate mortgages were also 13 basis points lower at 3.01 percent and rates for 5/1 adjustable-rate mortgages averaged 2.91 percent and were seven basis points lower on average. Discount points averaged 0.80 percent for fixed-rate mortgages and 0.30 percent for 5/1 adjustable-rate mortgages.
Initial jobless claims fell last week with 215,000 new claims filed as compared to 233,000 jobless claims filed in the previous week. 1.48 million continuing jobless claims were filed last week as compared to the prior week’s reading of 1.47 million continuing claims filed.
Jobs Data Shows Mixed Results
Public and private sector jobs data and the national unemployment rate reflected a strong labor market. The government’s Non-Farm Payrolls report tracks public and private-sector job growth and reported 678,000 jobs were added in February as compared to expectations of 440,000 jobs added and January’s reading of 481,000 jobs added.
The ADP jobs report includes only private-sector jobs data; 475,000 jobs were added in February as compared to predictions of 400,000 jobs added and January’s reading of 509,000 private-sector jobs added. The national unemployment rate dropped to 3.80 percent; analysts expected an unemployment rate of 3.90 percent and January’s jobless rate of 4.00 percent.
What’s Ahead
This week’s scheduled economic reporting includes readings on job openings and quits, inflation, and the University of Michigan’s preliminary reading on consumer sentiment. Weekly reports on mortgage rates and jobless claims will also be released.
Mar 7, 2022 | Financial Reports
Last week’s economic reporting included readings on construction spending, written testimony from Fed chair Jerome Powell and data on public and private sector jobs and national unemployment. Weekly readings on mortgage rates and jobless claims were also released.
Fed Chair Hints at Rate Hikes in Written Testimony
Federal Reserve Chairman Jerome Powell indicated that consistent rate hikes of the Fed’s target interest rate range will likely occur throughout this year, but he said that the Fed would proceed carefully. Analysts interpreted Mr. Powell’s remarks to mean that he would limit each rate hike to 0.25 percent but could be higher depending on the pace of inflation.
Inflation rose by 7.50 percent year-over-year in January; this was the highest inflation rate since 1982. Chairman Powell said the Fed wanted to prevent persistent high inflation while promoting sustainable economic expansion and a strong labor market. The war in Ukraine could lead to faster inflation as Russia is the world’s second-largest producer of oil.
Mortgage Rates, Fall, Jobless Claims Mixed
Freddie Mac reported lower average mortgage rates last week as the rate for 30-year fixed-rate mortgages fell by 13 basis points to 3.76 percent. Rates for 15-year fixed-rate mortgages were also 13 basis points lower at 3.01 percent and rates for 5/1 adjustable-rate mortgages averaged 2.91 percent and were seven basis points lower on average. Discount points averaged 0.80 percent for fixed-rate mortgages and 0.30 percent for 5/1 adjustable-rate mortgages.
Initial jobless claims fell last week with 215,000 new claims filed as compared to 233,000 jobless claims filed in the previous week. 1.48 million continuing jobless claims were filed last week as compared to the prior week’s reading of 1.47 million continuing claims filed.
Jobs Data Shows Mixed Results
Public and private sector jobs data and the national unemployment rate reflected a strong labor market. The government’s Non-Farm Payrolls report tracks public and private-sector job growth and reported 678,000 jobs were added in February as compared to expectations of 440,000 jobs added and January’s reading of 481,000 jobs added.
The ADP jobs report includes only private-sector jobs data; 475,000 jobs were added in February as compared to predictions of 400,000 jobs added and January’s reading of 509,000 private-sector jobs added. The national unemployment rate dropped to 3.80 percent; analysts expected an unemployment rate of 3.90 percent and January’s jobless rate of 4.00 percent.
What’s Ahead
This week’s scheduled economic reporting includes readings on job openings and quits, inflation, and the University of Michigan’s preliminary reading on consumer sentiment. Weekly reports on mortgage rates and jobless claims will also be released.
