Existing home sales rose slightly in November, indicating a stabilization in housing, according to the National Association of REALTORS.
Mortgage interest rates are near historic lows and the most current data shows decelerating price declines, along with a modest reduction in the number of homes on the market.
According to Freddie Mac, the national average commitment rate for a 30-year, conventional, fixed-rate mortgage fell to 6.21% in November from 6.38% in October! The rate in November of 2006 was 6.24%!--
Monday, January 21, 2008
Monday, January 14, 2008
When it comes to remodeling, it's what's outside that counts!
Many buyers judge a house by its exterior. Three of the four projects with the highest national percentage of costs recouped this year were exterior upgrades.
The most profitable project on the national level was upscale siding replacement, recouping 88% of costs upon resale. Wood deck additions and wood window replacements also returned more than 80% of costs, at 85% and 81%, respectively.
On a national average, the only interior project to return more than 80% of remodeling costs this year was a minor kitchen remodel, returning 83% of project costs at resale.
Three other exterior projects were tested. Nationally, adding a back up power generator only returned 58% of the investment on resale, although Texas had a 68% return. Midrange garage additions returned nearly 70% nationally, while an upscale garage addition returned approximately 65% nationally.
The least profitable projects were a back-up power generator, sunroom addition, and home office remodel.
When considering a remodeing project, particularly with an eye toward resale, it's important to evaluate your home's current condition, how the project will change the existing space in your home, as well as how your remodeled home will compare to other homes in your community.
For example, using a breakfast nook to expand the kitchen seems like a good use of space, but using the same space to add a first floor bathroom in an older home that doesn't have one will draw more buyers.
The most profitable project on the national level was upscale siding replacement, recouping 88% of costs upon resale. Wood deck additions and wood window replacements also returned more than 80% of costs, at 85% and 81%, respectively.
On a national average, the only interior project to return more than 80% of remodeling costs this year was a minor kitchen remodel, returning 83% of project costs at resale.
Three other exterior projects were tested. Nationally, adding a back up power generator only returned 58% of the investment on resale, although Texas had a 68% return. Midrange garage additions returned nearly 70% nationally, while an upscale garage addition returned approximately 65% nationally.
The least profitable projects were a back-up power generator, sunroom addition, and home office remodel.
When considering a remodeing project, particularly with an eye toward resale, it's important to evaluate your home's current condition, how the project will change the existing space in your home, as well as how your remodeled home will compare to other homes in your community.
For example, using a breakfast nook to expand the kitchen seems like a good use of space, but using the same space to add a first floor bathroom in an older home that doesn't have one will draw more buyers.
Know Your Closing!
KnowYourClosing.com is an educational website created by LandAmerica to assist buyers in understanding the closing process. Written in easy-to-understand language, the site contains valuable information to help homebuyers make the important decisions involved in what is often the largest financial transaction of their lives. It includes a glossary of terms, links to dozens of helpful resources, and a helpful Q&A section.Check out KnowYourClosing.com, a public service from LandAmerica
Monday, December 10, 2007
Property Auctions - An opportunity for buyers and sellers
Property auctions are seeing more action than at any time in the recent past. The proof that auctions are not merely for "stigmatized" properties is in the numbers: Nationally, residential real estate auctions generated some $16 billion in sales during 2006, a 12.5 percent jump from the year before, according to the National Auctioneers Association.
Residential auctions are now the fastest-growing segment of the auction industry, which expects to gross nearly $265 billion in revenue this year. Sellers who need or want to avoid high carrying costs are finding the the bidding process may be the best way to find a qualified buyer fast. Buyers can often land a great price since they're dealing with highly motivated sellers.
Residential auctions are now the fastest-growing segment of the auction industry, which expects to gross nearly $265 billion in revenue this year. Sellers who need or want to avoid high carrying costs are finding the the bidding process may be the best way to find a qualified buyer fast. Buyers can often land a great price since they're dealing with highly motivated sellers.
Projects that will bring the biggest return
*Home rehabbers who are considering a move in the not too distant future should focus mostly on exterior upgrades.
Projects that will return the LEAST amount of money
Projects that will return the LEAST amount of money
- home office remodels
- installing a back up generator
- adding a mid-range sunroom
- Siding replacement (upscale)
- Deck addition (wood)
- Window replacement (wood)
- Kitchen remodel (minor)
- Mid-range bathroom remodel
Friday, November 30, 2007
The Biggest Mistakes Home Sellers Can Make
1. Failing to prepare a home for sale
example: selling a home "as is" in a competitive housing market
buyers tend to offer more for a home that is clean, neat and without obvious major repairs to be made
2. Not using a REALTOR
15% of all homes sold are sold by the owner
owners may overprice or underprice their home without a REALTOR whose knowledge of the housing market would be able to correctly price the home
overpricing a home may lead to it sitting on the market as the most expensive home in the neighborhood; you will also turn away qualified prospects who might be potential buyers
underpricing a home means that the owner may sell it, but net far less from the sale than they would have with a REALTOR who would have priced it correctly
becoming the "seller" of your own home is a process many people find difficult; keeping the transaction on track until closing is not something many home sellers are prepared to do
3. Choosing the correct REALTOR
the right agent will meet the seller's needs, work with similar homes in the area, present a thorough marketing plan and analysis and offer well-thought out advice based on knowledge of the area and market in general
4. Hanging around the house during showings
buyers don't want to insult a seller, nor do they want the seller to think they're too interested
most buyers tend to feel more comfortable asking an unbiased sales agent questions freely without the owner's immediate presence
5. Flexibility is important
if you limit access to your home, you may be creating a showing schedule that doesn't meet the needs of potential buyers
it might mean additional housekeeping, but it will mean additional showings
6. Play the game
during the offer situation with a potential buyer, some sellers feel insulted by how low an offer may be, but every offer is worth responding to
the seller should send back a counter-offer which suggests they are willing to entertain a serious offer, but that the current offer isn't good enough
take into account financial incentives which can attract buyers without cutting too deeply into the seller's profits: home warranties, paying some of the points or a percentage of the closing costs (make sure to factor this into the asking price for the home)
7. Miscellaneous upkeep
buyers will be turned off by all of the following: pet odors, other odors, food left sitting out, signs of insects, overgrown shrubs, dirty windows and trim, unmade beds, obvious signs of water damage, lawns that haven't been mowed, toys left in the yard or on the front porch
keep in mind that prospective buyers are looking at the home as the place where they would live!
example: selling a home "as is" in a competitive housing market
buyers tend to offer more for a home that is clean, neat and without obvious major repairs to be made
2. Not using a REALTOR
15% of all homes sold are sold by the owner
owners may overprice or underprice their home without a REALTOR whose knowledge of the housing market would be able to correctly price the home
overpricing a home may lead to it sitting on the market as the most expensive home in the neighborhood; you will also turn away qualified prospects who might be potential buyers
underpricing a home means that the owner may sell it, but net far less from the sale than they would have with a REALTOR who would have priced it correctly
becoming the "seller" of your own home is a process many people find difficult; keeping the transaction on track until closing is not something many home sellers are prepared to do
3. Choosing the correct REALTOR
the right agent will meet the seller's needs, work with similar homes in the area, present a thorough marketing plan and analysis and offer well-thought out advice based on knowledge of the area and market in general
4. Hanging around the house during showings
buyers don't want to insult a seller, nor do they want the seller to think they're too interested
most buyers tend to feel more comfortable asking an unbiased sales agent questions freely without the owner's immediate presence
5. Flexibility is important
if you limit access to your home, you may be creating a showing schedule that doesn't meet the needs of potential buyers
it might mean additional housekeeping, but it will mean additional showings
6. Play the game
during the offer situation with a potential buyer, some sellers feel insulted by how low an offer may be, but every offer is worth responding to
the seller should send back a counter-offer which suggests they are willing to entertain a serious offer, but that the current offer isn't good enough
take into account financial incentives which can attract buyers without cutting too deeply into the seller's profits: home warranties, paying some of the points or a percentage of the closing costs (make sure to factor this into the asking price for the home)
7. Miscellaneous upkeep
buyers will be turned off by all of the following: pet odors, other odors, food left sitting out, signs of insects, overgrown shrubs, dirty windows and trim, unmade beds, obvious signs of water damage, lawns that haven't been mowed, toys left in the yard or on the front porch
keep in mind that prospective buyers are looking at the home as the place where they would live!
Tuesday, November 13, 2007
Local Expertise from Around Town: Plumbing Edition
Before buying, test the plumbing - before the plumbing tests you!
Mr. Rooter : "The cost of plumbing repairs can add up, especially if a new homeowner isn't planning on it. So knowing about a potential plumbing problem and how much it will cost to repair can factor into the home-buying decision."
So...before buying:
- Examine all faucets for drips.
- Open cabinet doors and check under sinks for leaks.
- Turn water supply valves on and off to test for leaks.
- Look for rust and corrosion on all plumbing features (sinks, pipes, etc.).
- Flush toilet to see how it flushes. Does it continue running after the tank is full? Is all debris cleared from the bowl?
- Inspect the base of the toilet for signs of water damage or soft floors.
- Run the garbage disposal to see if it is working properly.
- Check the first four digits of the water heater's serial number (they are the month and year it was made) to make sure it isn't more than 10 years old.
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