Should You Do Those Home Improvements Before Selling Your Home?Qualifying for an affordable mortgage has grown as an issue for most buyers. If a seller is considering putting money into the home in order to boost the sale price, this might be a bad strategy. A buyer who is squeezed financially might be willing be bend on amenities to lower their monthly payment. The buyer can do the fixing-up later when he or she has the money to do so. A seller should consider how much the improvements would cost relative to how much they would boost the bottom line; it might be wiser to market your home as a “fixer upper”.
Furthermore, at the lower price, the buyer’s equity may cover more of the down payment, helping them to get a better rate. Today, buyer’s top priority is affordability…not necessarily stainless steel appliances. Remember, while builders can afford to throw in amenities at cost, most sellers cannot.
Labels: home improvements, home sales
The first step in selling your house is "Get rid of the Clutter". This is the hardest thing for most people to do because they are emotionally attached to everything in the house. After years of living in the same home, clutter collects in such a way that may not be evident to the homeowner. However, it does affect the way buyers see the home, even if you do not realize it.
Clutter collects on shelves, counter tops, drawers, closets, garages, attics, and basements. You want as much open clear space as possible, so every extra little thing needs to be cleared away.
Take a step back and pretend you are a buyer. Let a friend help point out areas of clutter, as long as you can accept their views without getting defensive. Let your agent help you, too.
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Signs That Inflation May Be Less of a Threat to the Economy Help Push Mortgage Rates Lower
McLEAN, VA -- Freddie Mac (NYSE:FRE) today released the results of its Primary Mortgage Market Survey (PMMS) in which the 30-year fixed-rate mortgage (FRM) averaged 6.24 percent with an average 0.5 point for the week ending November 16, 2006, down from last week when it averaged 6.33 percent. Last year at this time, the 30-year FRM averaged 6.37 percent.
The 15-year FRM this week averaged 5.94 percent with an average 0.5 point, down from last week when it averaged 6.04 percent. A year ago, the 15-year FRM averaged 5.90 percent.
Five-year Treasury-indexed hybrid adjustable-rate mortgages (ARMs) averaged 6.04 percent this week, with an average 0.5 point, up from last week when it averaged 6.08 percent. A year ago, the five-year ARM averaged 5.86 percent.
One-year Treasury-indexed ARMs averaged 5.53 percent this week with an average 0.5 point, down from last week when it averaged 5.55 percent. At this time last year, the one-year ARM averaged 5.20 percent.
"Both long- and short-term mortgage rates fell this week on early signs that the threat of inflation may be waning," said Frank Nothaft, Freddie Mac vice president and chief economist. "The Producer Price Index (PPI) and Consumer Price Index (CPI) for October came in lower than expected and bond yields dropped, pulling mortgage rates lower."
"We've probably seen the worst of the housing slump, although it may not have entirely bottomed out yet. On the other hand, lower mortgage rates should help stimulate activity in the housing market."
Published: November 17, 2006
Housing market outlook brighter by mid-2007Tuesday, November 14, 2006
Americans remain highly confident about the nation's housing prospects, with more than four out of five homeowners expecting the value of their home to appreciate over the next five years and nearly seven out of 10 calling it their most valuable investment, according to results from a new nationwide survey.
"The poll clearly debunks the more sensational media reports speculating on the demise of the housing market," said David Pressly, president of the National Association of Home Builders (NAHB) and a home builder from Statesville, N.C. "It is interesting to note that other polls conducted by major news organizations have come up with similar results, indicating that despite the current housing market downturn Americans resoundingly believe that buying a home is the best investment they can ever make."
The survey of 2,000 households, including more than 1,750 registered voters, was conducted by RT Strategies between Oct. 26-29.
The polling found that 81 percent of homeowners believe that the value of their homes will rise over the next five years. Only 13 percent felt their home would fall in value, while 4 percent expected no change and 3 percent were unsure.
In addition, 69 percent of the respondents listed their home as their most valuable investment. By contrast, this was followed by 401(k) and other retirement accounts, with just 11 percent of those polled citing this as their top investment.
Looking ahead, NAHB said the housing market is poised for solid and sustained growth in the future.
"We are in the midst of an inevitable adjustment following the housing boom of 2004-2005 when housing market activity soared to unsustainable levels," said NAHB Chief Economist David Seiders. "Housing demand should stabilize in short order, and the downward adjustment to housing production should run its course by mid-2007. The market that emerges from this correction will display good balance between supply and demand, and move to a healthy and sustainable trend based on solid underlying fundamentals."
Copyright 2006 Inman News Features
