Bob's Properties

Simple Tips for Better Home Showings

Bob Wert — Fri, 02 May 2008 18:43:57 +0000

1. Remove clutter and clear off counters. Throw out stacks of newspapers and magazines and stow away most of your small decorative items. Put excess furniture in storage, and remove out-of-season clothing items that are cramping closet space. Don’t forget to clean out the garage, too.

2. Wash your windows and screens. This will help get more light into the interior of the home.

3. Keep everything extra clean. A clean house will make a strong first impression and send a message to buyers that the home has been well-cared for. Wash fingerprints from light switch plates, mop and wax floors, and clean the stove and refrigerator. Polish your doorknobs and address numbers. It’s worth hiring a cleaning service if you can afford it.

4. Get rid of smells. Clean carpeting and drapes to eliminate cooking odors, smoke, and pet smells. Open the windows to air out the house. Potpourri or scented candles will help.

5. Brighten your rooms. Put higher wattage bulbs in light fixtures to brighten up rooms and basements. Replace any burned-out bulbs in closets. Clean the walls, or better yet, brush on a fresh coat of neutral color paint.

6. Don’t disregard minor repairs. Small problems such as sticky doors, torn screens, cracked caulking, or a dripping faucet may seem trivial, but they’ll give buyers the impression that the house isn’t well-maintained.

7. Tidy your yard. Cut the grass, rake the leaves, add new mulch, trim the bushes, edge the walkways, and clean the gutters. For added curb appeal, place a pot of bright flowers near the entryway.

8. Patch holes. Repair any holes in your driveway and reapply sealant, if applicable.

9. Add a touch of color in the living room. A colored afghan or throw on the couch will jazz up a dull room. Buy new accent pillows for the sofa.

10. Buy a flowering plant and put it near a window you pass by frequently.

11. Make centerpieces for your tables. Use brightly colored fruit or flowers.

12. Set the scene. Set the table with fancy dishes and candles, and create other vignettes throughout the home to help buyers picture living there. For example, in the basement you might display a chess game in progress.

13. Replace heavy curtains with sheer ones that let in more light. Show off the view if you have one.

14. Accentuate the fireplace. Lay fresh logs in the fireplace or put a basket of flowers there if it’s not in use.

15. Make the bathrooms feel luxurious. Put away those old towels and toothbrushes. When buyers enter your bathroom, they should feel pampered. Add a new shower curtain, new towels, and fancy guest soaps. Make sure your personal toiletry items are out of sight.

16. Send your pets to a neighbor or take them outside. If that’s not possible, crate them or confine them to one room (ideally in the basement), and let the real estate practitioner know where they’ll be to eliminate surprises.

17. Lock up valuables, jewelry, and money. While a real estate salesperson will be on site during the showing or open house, it’s impossible to watch everyone all the time.

18. Leave the home. It’s usually best if the sellers are not at home. It’s awkward for prospective buyers to look in your closets and express their opinions of your home with you there.

30-Year Rates Jump to 6.03%

Bob Wert — Fri, 25 Apr 2008 19:43:55 +0000

Freddie Mac reported a jump in the 30-year fixed mortgage rate to 6.03 percent during the week ending April 24; It went up from 5.88 percent the prior week, marking the first time in six weeks that mortgage rates rose above the 6 percent level.

The 15-year fixed mortgage rate climbed during the same period, moving slightly up to 5.62 percent from 5.40 percent last week.

The five-year adjustable mortgage rate rose to 5.68 percent from 5.48 percent, while the one-year adjustable rate climbed up to 5.28 percent, from 5.10 percent.

The rise in interest rates were attributed to heightened inflationary concerns. As was mentioned in a previous blog entry, concerns of inflation will inch up interest rates.

To those sitting on the fence hoping home prices will decrease further, interest rate increases will make any negligible home price decreases not worth the wait. In fact, if interest rates go up another ½ percent or more, a home price drop of $10,000 will still cost more in interest rate charges in the long run.

The difference in a decade

Bob Wert — Sat, 19 Apr 2008 16:55:38 +0000

Looking back 10 years

10 years ago we were all younger and more energetic. You could have never imagined today you would be so different from the person that you thought yourself to be a decade’s ago. Plans change, chance events materialized, and instinctual decisions interestingly turned out to be right on. That’s the unpredictable journey of life.

Today

There are about 25 million more people living in the USA today. Employment has grown by an astounding 11 million jobs. The typical family income grew from $47,000 to nearly $60,000 in the past 10 years. The stock market roller coaster ride can be quite scary, but the Dow Jones Index has moved up from 9,000 to today’s 12,000+. Interest and borrowing rates are much lower today than they were in 1998. Yes, home prices are higher, but the housing affordability index, which takes into account people’s ability to buy a median priced home at prevailing mortgage rates, is quite comparable between the periods of time. The index was at 137 in February 1998 compared to 135 in February this year.

So what is limiting today’s demand for housing? The softer demand for housing is psychological (National and state Media doom and gloom catching headlines). It is simply now a crisis of confidence perpetrated by a media unfamiliar with realities of localized and regional real estate markets and conditions.

As rising home sales and increasing home prices begin to climb in the third and last quarter of 2008, many folks might regret not buying when good opportunities and interest rates were common. Contact your “local” Realtor and ask him or her if the market you are in indicates a good time to buy.

New FHA & Conforming Loan Limits

Bob Wert — Tue, 08 Apr 2008 13:34:22 +0000

Under the Economic Stimulas Act of 2008, FHA and conforming loan limits are set at 125% of area median home prices as determined by HUD.

Higher loans limits should draw many “move-up” buyers into the market since they will be able to get better loan terms.

If you have been looking to move up into a larger or nicer home, now is the time to do so. Loan limit increases, asking price decreases, willing lenders, and the potential for bargains in negotiations makes it a great time to buy or buy up.

Home Sales Still Strong in Many Areas

Bob Wert — Fri, 04 Apr 2008 19:38:38 +0000

The housing slowdown isn’t being felt in some areas around the country.

For example, in some California areas the housing supply limited.

Other metropolitan areas continued to post gains in home prices nearly every month are Seattle, Portland, OR, and Charlotte, NC. In Charlotte, home price growth has averaged around 7 percent over the last five years. In San Francisco prices have declined a little, but demand still remains very strong.

Real Estate markets vary considerably by region and state, but can vary by county or locality. South East Pennsylvania has fared better than many other areas and states.

Although real estate has always been a good investment, consult your Realtor or agent on local market conditions before deciding to buy or sell. They, especially more so then the national media, are the most qualified to provide realistic real estate conditions.

Ignore the doom and gloom Headlines about Buying

Bob Wert — Thu, 27 Mar 2008 16:44:37 +0000

There is a good reason to buy now instead of waiting for prices to come down.
Consider a typical home that sells for around $219,000. For example, you put down 20% and get a 30 year fixed rate mortgage at today’s rate of 5.5%. With that, monthly principal and interest payments would come to around $995.

So let’s say that 12 months from now the same home sells for 10% less or around $197,000. But by then the recession is over and the Fed starts jacking up interest rates to slow any inflation. Mortgage costs rising just one-half percent, to say 6% or a little more, your monthly payments will actually be similar or even a higher. The same home monthly payments might cost closer to $1,000 per month. In this case, you would not have saved anything.

And to make it more difficult, homes prices would have steadied and sellers will be less willing to negotiate, making any bargains harder to come by. In the mean time, you would have lived in a place you are not happy with.

Housing risks always seem more severe when headlines give indications otherwise, but this is actually the best time to think investing in a home long term.

New cuts in interest rates helping Adjustable Rate Mortgage (ARM) holders

Bob Wert — Fri, 21 Mar 2008 15:32:47 +0000

The Federal Reserve’s recent rate cutting moves are not lowering mortgage rates for new buyers, as much as they helping those who hold existing adjustable rate mortgages.

In addition, rates on home equity lines, credit cards, and many auto loans have all dropped significantly. Many homeowners now will not face higher rates as their adjustable-rate mortgages reset, helping alleviate some of the recent foreclosure problems.

New applicants for mortgages are likely to continue to pay more then would be expected. Mortgage rates usually follow the 10 year US Treasury rates, and have traditionally traded just below 2 percent above 10-year treasury yields. Treasury’s currently yield about 3.45 percent. However, investors including pension funds, insurance companies, and bond mutual funds are demanding a greater premium these days for mortgages over the usually less risky U.S. Treasury bonds.

Good advice for buyers seeking mortgages is to shop around. All mortgages are not alike, and mortgage rates are still at historically low rates.

Now is the best time for those buyers who have been sitting on the fence to make their move into homeownership or for those who want to buy up into larger homes.

Home Premarketing checklist

Bob Wert — Wed, 12 Mar 2008 17:43:16 +0000

Preparing your home for sale will make a big difference in the amount of time it takes to sell. By following a few simple pre-marketing tips, you can eliminate any buyer objections before they arise by doing needed repairs, maintenance and improvements.

Outdoors:
Spruce up gardens and lawn, trim shrubs and replace dead plants; Arrange neatly and clean outdoor furniture; Paint your front door for good first impressions; Manicure your yard and ensure drive way and entryways are free of cutter.

Exterior:
Ensure mailboxes, house numbers, and exterior lighting is in good working condition; touch up paint where needed around the home; inspect chimneys for damage and cracks; repair any loose trim, drain pipes and fencing; and clean window and screen stains. Garage: Remove clutter and straighten up shelves; clean and scrub floors.

Living areas:
Apply new paint if needed with neutral toned paint; clean carpets and drapes; replace burnt out light bulbs; clean fireplaces and any smoke stains.

Kitchen:
Clean and de-clutter sinks, appliances and counter tops; Wash and wax floors; clean oven, refrigerators and other appliances; clean any tile and grout that is stained or dirty and replace tiles if needed.

Bathrooms:
Clean mirrors, chrome, glass and any other surfaces; put in a new shower curtain; repair leaky or dripping faucets; clean caulking and grout if needed.

Closets:
Ensure doors, closets and drawers open easily; remove clutter and straighten up shelves and racks; arranged clothes and shoes.

Overall tips:
Check out the basics around the house. It only takes a few minutes to ensure all windows, doors and cabinets aren’t loose, don’t stick or squeak; Clean furnaces, A/C coils, and hot water heaters to show your home is well maintained.