Buying a Home: The Cost of Waiting

Buying a Home: The Cost of Waiting

Posted: 01 Jul 2014 04:00 AM PDT

Whether you are a first time buyer or a move-up buyer, you should look at the projections housing experts are making in two major areas: home prices and mortgage rates.

PRICES

Over 100 economists, real estate experts and investment & market strategists were recently surveyed. They were asked to project where home prices were headed. The average value appreciation projected over the next twelve month period was approximately 4%.

MORTGAGE INTEREST RATES

In their last Economic & Housing Market Outlook, Freddie Mac predicted that 30 year fixed mortgage rates would be 4.8% by this time next year. As of last week, the Freddie Mac rate was 4.14%.

What does this mean to you?

If you are a first time buyer currently looking at a home priced at $250,000, this is what it could cost you on a monthly basis if you wait to buy next year:

If you are a move-up buyer currently looking at a home priced at $500,000, this is what it could cost you on a monthly basis if you wait to buy next year:

Bottom Line

With both home prices and interest rates projected to increase, buying now instead of later might make sense.
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ATTENTION: If you are a real estate agent looking for more information to share with your buyers as to why now is a great time to purchase, sign up for a Free 14 Day Trial of KCM and download the Summer Edition of our 11-page eGuide,Things to Consider When Buying A Home.  

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4 Ways to Make a Great First Impression When Selling Your Home

When selling your home, first impressions matter. Just because your home is listed and the “For Sale” sign is firmly planted in the front lawn does not mean it will attract buyers.
A home needs to be visually appealing to encourage a sale. Even in a market where homes are selling quickly and at full asking prices, it is still crucial to spruce up your home and prove that it is worth every penny you are asking for it.
Here are four tips to help your home make a good first impression that beckons potential buyers:

1. Make an Enticing Exterior
The walk-up to your house should be inviting, not forbidding. Stay on top of your lawn mowing and driveway maintenance, and tidy up your front landscaping. This includes:

• Moving all toys, bicycles and scooters away from the front of the house
• Cleaning windows until they are sparkling
• Making sure address numbers are in place and polished
• Giving your front door, garage door and gutters a fresh coat of paint
• Adding a few embellishments like a colorful welcome mat, a wreath for the door or a big potted plant to the side of your front door
• Checking the roof to see if it needs repair, even if it’s cosmetic.

2. Shape Up the Interior
Once the exterior wows potential buyers, you can continue to make a great impression as they make their way inside.
For starters, clear any clutter. If you have too much furniture, put some of it in storage. Keep kitchen and bathroom countertops as clear as possible. Closets and shelves should be well-organized and give the impression that they are spacious.
Remove excess knickknacks or family photos that make the house feel like your home, instead of allowing potential buyers to picture themselves as the residents.
Clean the inside of your home from top to bottom. Dust and open all your blinds and curtains to let light in. Wash away smudges from walls and touch up the paint as necessary. Wipe down the inside and outside of your appliances and microwave. Remove ash from your fireplace. Get your carpets cleaned and vacuum your floor each morning before potential buyers view your house.
Addressing aesthetics can leave a lasting, favorable impression. So, hang fresh, clean towels in the bathrooms. Position a beautiful centerpiece in the center of your dining room table and a few potted plants in decorative containers throughout your home. Consider placing potpourri in key spots, especially if you need to eliminate pet odors or if you have a smoker in the house.

3. Check on Evening Appearance
Even if you’re positive your home is presentable during the day, double-back to the exterior and interior areas at dusk to gauge your home’s ambiance in the evening.
Ensure that the walkway is well-lit and house numbers are visible, and that outdoor lighting enhances the home’s appearance.
Inside, make sure to replace nonfunctioning light bulbs in fixtures and vanities, and leave key decorative or track lighting turned on so that the home doesn’t seem dark upon entering.

4. Make Necessary Repairs
Repair anything that is broken. Cabinet doors should close properly. All your faucets should be drip-free.
Remember, you are trying to present a simple, clean, attractive, problem-free home that exudes potential—an empty, yet enticing palette for your home’s next owners.
Taking time to create a great first impression sometimes is all it takes to quickly send a offer your way.
This article is updated from a previous version by Michele Dawson/Realty Times.

 http://www.realtor.com/advice/4-ways-make-great-first-impression-selling-home/

6 Home-Buying Mistakes for You to Avoid

Buying a home can be exciting, but you don’t want to rush into it. Making simple errors while going about the home-buying process can cause a lot of stress—both emotional and financial—for years to come.
So, take some time to educate yourself about the common mistakes homebuyers make and your own home-buying experience will more likely be successful and exciting:

1. Going Over Budget
Don’t borrow more than you can comfortably afford. For example, don’t get a 15-year mortgage with high monthly payments when a 30-year mortgage will give you more wiggle room. Otherwise, you’ll be strapped for money and unable to save as much as you want.  A rule of thumb: Total monthly debts, including your mortgage, should not exceed 43% of your total pretax income.
To figure out if you are getting a good deal, do a comparable market analysis through a REALTOR®. Figure in other costs, such as agent costs, escrow fees, title and homeowners insurance, property taxes, legal costs, notary fees and closing costs.


2. Using the Wrong Agent
Avoid dealing with a dishonest or unqualified real estate agent by selecting an agent who is a member of the National Association of REALTORS®. They work as licensed, independent contractors through real estate firms and are governed by strict regulatory guidelines.
Interview a few REALTORS® and pick the one you feel best represents your needs.


3. Not Loan Shopping
Shop around for the best rate. Don’t go with the first one a bank offers you. A mortgage broker can help with this process, but you can also shop around on your own.


4. Banking on Pre-Approval
Just because you’ve been pre-approved doesn’t absolutely mean the mortgage is yours. If your financial situation is called into question during the underwriting process, your lender can refuse to give you the loan. That includes taking out new loans after being pre-approved or switching jobs. They will run your credit, bank and income statements again, so be prepared to answer any questions about discrepancies they might find.


5. Only Loving the House
Your new house doesn’t exist in a vacuum. If you don’t like the block or the town where the house is located, you’re asking for trouble. You won’t be happy there and you’ll have a hard time reselling the property if the neighborhood isn’t good.
Do your research by visiting the area during different times of the day and week. Observe what the neighborhood is like after dark and on weekends. Notice if your street is congested during rush hour. Are the neighbors noisy? Are these the kind of kids you want your children to befriend? Ask yourself if the standard of living most closely represents yours.


6. Ignoring Inspections
Don’t skimp on home inspections when buying a house, even if it adds to the cost. Hire a certified inspector who will thoroughly check the electrical and plumbing systems, heating and air conditioning, roof and walls, foundation and structure, drainage, garage and basement.
You should also inspect your potential property for radon, asbestos, mold, lead, insects and pests. Ask your REALTOR® if he or she can recommend a trusted inspector.

Best on the Block: How To Create Curb Appeal

Spring is in the air, so it's time to give your home an exterior makeover and add curb appeal. A few simple tricks can help boost your home's profile, and ensure visitors get a good first impression when they arrive on your doorstep.

Make a statement with your front door:

Your front door is one of the first things people notice about your home. Is your door drab, drafty or just plain past its prime? Make a bold statement and improve your home's energy efficiency with a new Energy Star–qualified front door. Consider options with decorative glass accents and stunning sidelights to add more natural light while maintaining a sense of style and privacy.

"Finding entry doors that feature stylish options in a variety of popular materials from wood to fiberglass and steel options is easy, and the real beauty is in their performance," says Kathy Krafka Harkema of Pella Windows and Doors. "When replacing your old front door, choose from one that accents your home's style, with high–performance features that help keep out air and water, and low–maintenance convenience like durable prefinished options with coordinating trim."

Accessorize with new hardware:

Replace your front door hardware for a quick, easy facelift. Choose hardware finishes consistent with those of your home's light fixtures, mailbox and house numbers to maintain a polished, cohesive look. You'll be surprised what a difference new hardware on your front door can make in creating a positive look and feel.

Refresh exterior and trim colors:

Now's also a good time to add a new storm door to help keep out the elements, or to add a refreshing coat of paint on your existing exterior doors for a fresh look.

For a dramatic change, repaint your home's exterior. You can also change trim color to refresh your home's exterior impact. When updating trim, choose color schemes that match your home's primary exterior color, or complement it with a fresh twist.

Accent with lighting:

For nighttime curb appeal and safety, add a row of exterior accent lighting to illuminate a walking path with ground–insert solar lights. Or consider solar spotlights to bring out landscaping or architectural focal points. Install new matching light fixtures outside your front door, garage door or patio door to create an inviting feel and provide well–lit doorways to greet you and visiting neighbors and guests.

Create points of interest with plants:

Add pops of color by arranging potted plants around your front door, or on a porch or deck. Incorporate planters or container gardens of varied sizes, shapes and colors to add visual interest. Also, planting flowerbeds along driveways and walkways gives your home a softer, more inviting feel.

Turn Your "Extra Room" Into An Office For A Good ROI

Recently, Seattlebubble.com surveyed their visitors with this question: What's the most important "extra room" to have in a house? Nearly half the respondents (48%) said an office or study would be their most important extra room.

This article will discuss a few pointers about designing or comfortably integrating a home office into one's dwelling, which could also generate a good return on investment if you are using it for work, or a hobby that generates a few extra bucks.

Amy–Mae Elliott at mashable.com recently interviewed home office expert Lisa Kanarek, founder of WorkingNaked.com who said the first thing to do is decide where your home office should be.

Kanarek suggests considering obvious places like a spare bedroom, guest room or basement, as well as more unorthodox spaces like a dining room or formal living room, if rarely or never used.

One important consideration, she says, is making sure your office has a door, ensuring you can switch off when you're not working. Some other tips include:

• Install an L–shaped arrangement for a desk to double your work surfaces.
• Add shelves above or next to your desk to gain more storage space and to reduce desktop clutter.
• Use open shelves or a hutch that sits on your desk to increase your storage space.
• Invest in some decent, surge–protected extension cords to install around the room where you need power most.
• Consider a Wi–Fi printer, which can be kept further away from the computer.
• If you work from home full–time, you're going to be spending as much time in your office as you do in the rest of the house, Kanarek says. Don't treat your working space as a second–class accommodation. Give it the importance it deserves.

Prequalification vs. preapproval : Understand the benefits of each