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Displaying blog entries 11-20 of 110

Mortgage Rates Continue to Fall Amid China Scare

by Karen Picarello

The mortgage giant Freddie Mac just released new numbers showing continued decreasing rates for home loans. Its 30-year fixed rate is down to 4.1%, and its 15-year fixed rate is down to 3.57%. While this is not great economic news, it is great news for those who are looking for a home loan.

Rates continue to fall because of trade tensions between China and the U.S. Trumps tariffs and continued threats to increase tariffs have created an uncertain stock market. Not even strong employment numbers can strengthen predictions about the future, and weakened relations between China and the U.S. could keep mortgage rates low.

What Does this Mean for Prospective Home Buyers?

If you are thinking of purchasing a home with a mortgage anytime soon, you should get ready. Nobody knows how long rates will stay this low. A 4.1% rate is a lot less money to spend over the course of a loan, and if you can swing the 15-year fixed rate, you’ll be debt-free in less than 2 decades.

If your credit isn’t quite up to par, and you don’t think you’ll qualify for a 4.1% rate, you should work on improving it. It is quite possible that the rates will stay low for a while with this administration, but it won’t stay this way forever. You might be able to afford a home quicker than you think.

What Does this Mean for Current Homeowners?

For current homeowners, this means two things. The first thing is that you may want to look into a re-fi. Lower interest rates can take hundreds off of your monthly payment and reduce the overall amount of money you spend on interest over the term of the loan. Re-financing to a 15-year loan will improve the amount of money that is applied to your principle balance each month.

The second thing this means for homeowners is that there may be more people seeking mortgages, and this might be a good time to sell your home. It is a seller’s market, and home values have been increasing. Not only will you be able to get a higher offer for your home, but you will have more people who can successfully get loans out looking. This amounts to more successful closings, and overall, happier home sellers and buyers.

You’d be hard-pressed to find a lot of people who think the tension between China and the U.S. is great, but there has been one good result for the housing market, and that is continued decreasing interest rates.

LEED certification could help you sell your home.

by Karen Picarello

Millennials are buying homes, and they want to live sustainably. That means your energy-DEFICIENT older home is not an appealing prospect in the housing market.  One way to show this eco-friendly generation that your property appeals to their values is through LEED certification. It is LEED certification that could help you sell your home in a market filled with people trying to lessen their impact on the Earth.

What is LEED certification?

The United State Green Building Council has a program called Leadership in Energy and Environmental Design Program (LEED). It created a rating system for the energy efficiency of a home. A house can achieve a certification ranging from silver to platinum depending on the rating or score. Scoring categories include the materials used to build the structure being recycled or sustainable materials, indoor air quality, water efficiency, and reduced energy use. This may be something that is accomplished through LED lighting or solar panels.

How can I have my home certified?

The first thing to do is figure out where you could make energy efficiency improvements to your home. Then, register for LEED here. You will have to meet project goals and have them verified by LEED’s onsite certification process. Once certified, you’ll have a major selling point should you ever decide to sell your home, and all generations of buyers will see your home as one that is updated and efficient, meaning they won’t have to spend as much on utilities bills, and they’ll be eco-friendly.

Is it worth it?

If your home is older, it can be very difficult to impossible to get a platinum certification, as you aren’t going to be able to change the materials the home is built from, etcetera. However, some updates to get even the most basic of certifications will save you money while you’re in your home and reduce your carbon footprint. In some respects, the carbon footprint reduction means it is always worth it. Realistically, you should consider how much your investment will return comfort and savings. If you are planning on selling your home, it is worth a little more consideration. After all, LEED certification is simply peace of mind until you add it to the features of your listing. Then, it can equal a bidding war that could have you making more from your sale.

LEED certification is at the very least worth knowing about, so you can decide whether or not it is right for you. Many commercial buildings are now seeking the certification, as global conscientiousness amounts to public support and thus more earnings. It is always advisable to become more efficient, but you’ll have to decide for yourself if you want to go for the certification.

Buying a Home in a New Area

by Karen Picarello

If you are buying a home outside of your current town, you may be flying blind. If you aren’t familiar with the region, you could accidentally end up in a bad neighborhood or simply with bad neighbors. Don’t be sold on a home just because it fits your idea of a nice-looking residence. Scrutinize a little bit, and dig up the dirt on the neighborhood.

1. Research the Area

Look up statistics about the area. Things like the quality of schools, businesses, and services will help you to get an idea of the area you are considering. If there is a country club, it may be upper end….but visit the country club. It may be a doozy that is on its last leg and has a poorly maintained golf course. Make sure your information is updated. Communities change over time, so don’t rely on old info. Another thing you cannot rely on is social media, but at the same time, it can give you some really good dirt on local drama. If there are any major red flags, research it deeper to see if it’s real.

2. Talk to the Neighbors

There’s no better source than a primary source, and neighbors are just that. Ask them about the neighborhood, and while you’re at it, give them the onceover. Could you live next to them? This does not mean you have to be future besties, but you also need to tolerate one another. It may sound a little intrusive to barge in on the neighbors, but it will actually help break the ice. Who knows? Maybe they’ll help you move.

3. Get an Inspection

You also don’t really know what the last homeowners did. That’s a nice new paint job, but what is it covering up? New floor? Prior water damage? None of these things necessarily mean the other, but an inspection should weed out any major cover-ups. Inspectors will notice things that the potential home buyer may miss, such as a faulty water heater or a termite problem.

4. Check Utilities

Lastly, it is good to check the utilities. Is the home an energy hog? How much is the gas compared to other homes with electric heat? How much more in water does it cost to maintain a full-size swimming pool? This information will help you to determine if it is a home you can truly afford.

Do you really want to live in the exurbs?

by Karen Picarello

The hustle and bustle of Metro Phoenix can be exciting, but it can also cause a person to need some respite. This is why thousands of people have chosen the long commute to the exurbs. Living far away from the city has many advantages, but it also includes major disadvantages such as remoteness and home value volatility. When looking to purchase a home, make sure you consider the good and the bad features of the exurbs before making an offer.

The Good Features of the Exurbs

1. New:

Generally speaking, housing developments in the exurbs are newer than developments in Phoenix or suburbs because things naturally develop in an outward motion. This means you have modern features in the home and won’t run into things like asbestos or lead paint. It also means double-paned windows, central air, finished garages, and many things older homes don’t have.

2. Big:

Developments in the exurbs typically have homes situated on larger lots, as there is room for expansion. In contrast, inner city and suburban developments have often been cramped. If you have a family and want them to be able to play in a sprawling back yard, the exurbs will deliver.

3. Affordable:

One of the biggest draws to the exurbs is that it is affordable. For Millennials looking to start a family and own a decent-sized property, the exurbs is worth the commute. It is also a good option for retirees looking to downsize to a more affordable living situation.

4. Quality Communities:

The exurbs also offers a sense of community that is often lost in crowded landscapes. Many exurbs have country clubs, golf courses, and community parks that make the distance from the city negligible.

The Bad Features of the Exurbs

1. Distance:

A 30 mile commute on a freeway or highway filled with thousands of other exurb inhabitants EVERY day may get old after a while. It is possible to get burned out. However, many people are able to work remotely and only commute to work once or twice a week. Those with flexible work schedules have it made in this situation.

2. Market Volatility:

The housing crisis hit the exurbs hard because people were underwater on their mortgages. The value of homes fell and has only recently regained itself. However, a lot of this problem was caused by people owning homes they could not afford. Due to better lending practices, home buyers are only moving to the exurbs because they can afford it. Will this protect the market? Time will tell.

If you can handle the commute, the exurbs provides a peaceful getaway that you can call home. However, there are some risks like commute burnout and market volatility that are important things to consider before you go all-in on a home offer.

8 Buyer Turnoffs

by Karen Picarello

Selling your home is a balance between home improvements and wasting money on renovations that don’t add value. However, it is not a guessing game to predict what will attract a buyer. Avoid these 8 buyer turnoffs if you want your home to sell quickly.

1. Odor

Mildew, urine, and smoking scents are definite turnoffs to a home. Walking into a home with any rancid odors hits a person in the face like a ton of bricks, and it’s hard to overcome that even with good upkeep and strong bones. People are willing to do a little work on a home prior to moving in. If it requires gallons of KILZ and carpet removal to rid the home of the scents of past owners, buyers will be turned off.

2. Popcorn Ceiling

Removing popcorn ceiling is messy. It has to be wetted down and then scraped. Then, new texture must be applied. It is not a question of whether or not your buyers will want the popcorn removed. Nobody likes it anymore. Furthermore, it could contain asbestos, which is a much bigger problem when it comes to removal. Take care of your popcorn ceilings prior to putting your home on the market, or expect to adjust your price.

3. Cracks

Cracks in walls, floors, or foundations can mean trouble in the future. Homes do settle, and an older home is bound to have some cracks. Just know that any visible cracks will mean weaknesses in the structure of the home to buyers even if it isn’t the case.

4. Clutter

Clutter in a home is an eyesore and detracts from a person’s ability to envision themselves in the home. Dirty hoarding situations are even worse and speak to the homeowner’s ability to maintain the home during their inhabitance. Clean up the clutter, and don’t leave a bad impression.

5. No Curb Appeal

Speaking of first impressions, curb appeal is possibly the most important feature of a home. It is the first thing they see, and if it looks like a dump, people won’t want to enter. They will make up their minds prior to stepping in the front door. This doesn’t mean you have to be perfect, but make it so they can imagine it better with little effort.

6. No Parking

If you only have a single-car driveway, make sure it is available for the viewing of your property. If it is full and potential buyers have to walk a ways to get to the home, they will already see problems.

7. Old Electrical

Old electrical panels and old wiring are a headache for any buyers who aren’t looking for a total remodel. It has to be replaced, and in some cases, a home inspection could ruin lending opportunities.

8. Neighborhood

It’s not within your control, but the neighborhood may also be a big turnoff. It doesn’t matter if you have curb appeal if the rest of the houses are in disrepair or vacant. In order to sell under these conditions you may have to lower the cost or wait for the neighborhood to change. The latter may never happen.

Try to eliminate buyer turnoffs if you want to sell your home quickly. Although many of these items are expensive or out of your control, many are also remedied with minimal expenditures and a bit of elbow grease.

Negotiating Home Improvements into Your Sale

by Karen Picarello

When you are putting an offer on a home, multiple things are to be considered. One of those things is how much it’s going to cost to get the home ready to move in. If remodeling is on your list, the asking price is probably making you cringe. How much more will it cost to make a property your own? It turns out there are many financial options when it comes to negotiating home improvements into your sale.

1. Include Remodel Prices in the Offer

There is no reason not to lessen your offer if you think remodel costs should be considered in the negotiated price of the home. Additionally, if it is a buyer’s market, the homeowner’s may be more apt to accept such an offer. Be warned of lowering your offer to cover the costs of remodel. Your loan will also be less, so you’ll still have to find a way to come up with that extra money for the remodel.

2. Seller Pays for Remodel

You can also negotiate contingencies into your contract that say the seller will pay for repairs or improvements prior to closing. Sellers may agree to this for a negotiated loan amount or when repairs are necessary to pass a home inspection. This takes the responsibility of the repairs off of the buyer with the exception of any mortgage differences. Sellers have multiple options to cover these costs.

3. Loan with Remodel Costs Included

A buyer may seek out a loan that includes the costs of remodel. If a buyer has good credit, there is more likelihood that a loan of this sort will be approved. Not only does this free the seller from any connections from the home, but it also frees the buyer to create their own building plans.

4. Asks for the Necessities

Negotiation is the key concept when getting home improvements covered in your sale. The sellers may not be interested in helping you replace the wallpaper or creating an open concept kitchen. However, they may be accepting of more necessary items like a roof or windows. Make sure you try to get what you want out of a sale, but don’t lose opportunities because of being too rigid. Be flexible, and get what you can out of your purchase.

Rarely is an older home move-in ready without any paint or flooring changes. But when it comes to the necessities, make sure you have it covered in your home purchase or that you have the income available to make the repairs necessary.

Pre-approval Equals Seller Confidence

by Karen Picarello

With the Fed keeping interest rates stagnate, there could be more buyers in the market while interest rates remain low. However, predictions vary in whether or not the current seller’s market will continue. Many believe there is a shift on the horizon, but it is too soon to tell. For home buyers who are not cash buyers in any market, you can get the ball rolling by getting your loan pre-approved and increasing the seller’s confidence in you.

Why does a seller need confidence?

Cash buyers are a sure thing, and the mortgage process is not going to hinder the sale. On the other hand, if a buyer is going to use a mortgage to purchase the home, there are a number of things that can stall the sale. Proving income from self-employment, unknown liens against a property, and debt problems can stall or stop the mortgage process. Additionally, you must figure out how much you can afford and how much banks are willing to dole out. This is a complex process that may take a week or many months. Sellers want to know that you are ready to start the buying process, so they don’t have to wait for their house to close. Many home sellers are picking up a new mortgage, so they may not want to wait until you are pre-approved to sell their home.

How do you get pre-approved?

1. Check your credit:

If you need help getting your credit score increased, start with the basics. Make sure you are making payments on time, and make sure you don’t have too much debt compared to your assets. If you have debt problems, speak to creditors about your options. They may be able to lower your interest rates or give you a lower pay-off amount provided you pay in full.

2. Choose a lender:

There are many lenders from which to choose. Once you know you have your credit rating up to par, and you are ready to look for a lender, make sure you check out a few. Compare their rates and read their contracts, and choose a lender who you feel you can trust. You may want to refer to the advice of friends and family.

3. Provide the information needed:

You’ll have to give your potential lender your financial information in order for them to pre-approve. This means income information, debt information, credit scores, etc. The lender will go over everything and evaluate you as a financial risk. Then, they will pre-approve you for a certain amount. This is not the amount you must spend on a house, but it is the amount they feel that you can afford and the amount they are willing to provide.

Once you are pre-approved, you will still have more work involved in securing the mortgage, but your seller will know that you’ve already covered the basics, and it is likely that they will be paid in a timely manner.

Economic Worries May be Good for the Housing Market

by Karen Picarello

The economy is globally unstable, and with a lagging housing market, the Federal Reserve has decreased mortgage rates to the lowest amount in a year. New numbers are expected to be announced Wednesday, and experts are predicting that the Fed will not be raising rates any time soon. We won’t know until Wednesday, but it seems that economic worries are good for the housing market.

Wavering Stock Market = Incentives

The Federal Deserve increases and lowers interest rates in an attempt to keep all markets stable. Right now, the stock market is unstable due to global economic unrest. The trade war with China across one ocean and Brexit failures across the other ocean don’t have anyone feeling secure in volatile investments. They are seeking out secure investments like long-term bonds.

When the consumer is unsure like this, the Fed steps in and lowers interest rates to incentivize people to buy because they won’t lose as much money in interest. Last week, the rate went as low as 4.31 percent.

Insignificant Job Growth but Increased Wages

One of the other things on many economist minds is when Millennials are going to start buying homes. It’s not like there aren’t any who own homes currently, but they aren’t the major consumer demographic. They should be. Instead, Millennials are living with friends or family instead of taking on more debt. This is caused both by high rates of student loan but also by the inability to save enough for a healthy down payment.

Although job growth has been slower than expected, wages have gone up. This gives Millennials more disposable income and savings potential. It could be enough to make them feel confident in buying a home as a sound financial decision. They’ve seen the debt-ridden generations of the past and are reluctant to travel down the same path.

It’s a Guessing Game

Nobody knows what will happen to interest rates, but it makes sense that rates would stay the same or lessen. The economy is simply not safe enough to get people to buy houses unless they can’t resist low rates. Sales fell 1.2 percent from December to January, but there was an increase in new construction. As long as there are a no economic catastrophes, mortgage rates will probably only remain low for a short while. Hopefully, it will be enough to stimulate the economy. Until then, it could really help the housing market.

Do Home Renovations Pay?

by Karen Picarello

People who are selling their homes often perform costly renovations in the hopes of increasing the values of their homes. It is true that renovations can increase the value of the home, but they generally cost more than the increase in value.

Home renovations only pay in that they increase the interest in your home. You aren’t going to make money renovating your attic or even installing new windows. However, you may increase the number of offers that are close to your asking price, so they may be worth it.

1. Windows:

Ultimately the energy savings aren’t even worth replacing the windows from a monetary standpoint. It would take too long to recoup the costs from an energy savings standpoint. However, making sure your windows are in good repair and that the caulking is good will make potential buyers impressed. Small fixes will create the look needed to sell the home.

2. Front Door:

Your front door can be a huge selling point because it makes a first impression. Home buyers want strong doors for security reasons, and they want updated doors for energy efficiency. You will recoup the majority of the cost of your door, especially if your old door is in poor shape. One thing that could be a selling point is if you get a warranty on the door that is transferable to the new owner.

3. Fixtures:

One of the simplest ways to increase the salability of your home without a total renovation is to upgrade the fixtures. Faucets, outlets, lamps…anything that is dated will detract from the overall look of the home. Moreover, there is minimal cost. Hundreds of dollars versus thousands. In many cases, it can give a similar effect to a total room makeover for people who have never seen the room.

Tidy and Clean Instead of Renovating

Unless you have a contractor cousin or some type of money-saving magic to get your renovations done, they aren’t going to pay. However, if your home is a real fixer upper, some renovations may be necessary. Renovation is not ill-advised, but you won’t recoup all of your expenses in most cases.

Instead of focusing on renovations that may not meet the dreams of the future occupants, focus on staging your house for success. Remove all clutter, and make sure everything is clean. If you have accumulated a lot of stuff, put it in storage to make sure your home looks as put together as possible. The new homeowners can do their own renovations, so what you need to focus on is making their dreams become plausible. A dirty house is difficult to look beyond, but a home that is tidy and clean is like a clean slate looking for a new identity.

Moving Out But House Hasn’t Sold? A Few Tips

by Karen Picarello

The world would be a more wonderful place if timing was perfect, but it isn’t, and you are leaving your unsold house for a new home. It will be vacant for an unknown period of time. Your real estate agent has the keys and will continue to show the home, but that isn’t enough to keep your home safe from harm when you have moved on.

5 Tips for your Vacant Home

1. Check your Insurance.

If your home is vacant for a certain amount of time, your homeowners insurance will not cover losses. Just like car insurance, they typically offer some coverage during the transition period, but it may only allow for one month. Read your policy or check with your agent to make sure you have proper coverage. There is nothing worse than having a claim and finding out that you aren’t covered…and you didn’t know.

2. Increase security.

If your house is going to be vacant, make sure it is secure. All doors and windows should have good locks, and security lights should be strategically placed to deter criminals from a well-lit house. If you have the means, invest in a security system. Other things that help are making the house look occupied. This can be done by setting lights on timers or parking a car in the driveway. Vacant houses will be targeted if they are found out.

3. Notify others.

One of the best security systems is alert neighbors, and you should let them know your home is vacant. They’ll report suspicious activity. Also, let your family and friends know. Maybe some of them can drive bay once in a while to make sure everything looks okay.

4. Continue maintenance.

Remember you are trying to sell your home, so it should not appear neglected. If you are moving out of town, hire someone to mow the lawn. Make sure the home is winterized or weeds are pulled. Have someone come in a dust. The longer your home sits vacant, the more it will be neglected if you let it.

5. Set for success.

Maintaining a home can be a big job but not if you leave the home set up for success. Set your thermostat to an appropriate level to maintain efficiency. Make sure things are turned off where they should be. Put your sprinkler system on autopilot. Don’t leave things halfway finished. Any corner that is cut will come back to haunt you once you get an offer.

Displaying blog entries 11-20 of 110

Contact Information

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TeamPicarello
RE/MAX Fine Properties North Scottsdale
21000 N. Pima Road, Suite 100
Scottsdale AZ 85255
Office: (480)860-8733
888-548-8713
Fax: (480)860-8755