Can’t Sell Your House? 6 Mistakes You Might Be Making | #YajneshRai #01924991 #SangeetaRai #02026129

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Can’t Sell Your House? 6 Mistakes You Might Be Making

In a perfect world, the home selling process would be straightforward and quick. You’d list your home for sale, schedule house tours, receive multiple offers, and sell your home fast and above list price. Unfortunately, selling your house isn’t always that simple and your home could end up sitting on the housing market longer than you anticipated.

As a seller, there are few things more frustrating than your home not selling and having no idea why. Let’s dive in and discuss six likely reasons your home isn’t selling, and address how to fix the problems.

Nice curb appeal of American craftsman style house will help sell the home

1. Your home needs improvements

Being a homeowner comes with many responsibilities, including keeping your home and property in good condition. Sure, you might vacuum, dust, and mop regularly – but in today’s market, that sometimes isn’t enough. You may need to put a little time and money into your home so you can receive more offers and sell your house quickly. Furthermore, if you’ve had buyers interested in your home, but maintenance problems are encountered during the home inspection, you could end up losing the sale.

What’s the solution?

Before listing your home for sale, start researching what other similar homes are being sold for. Make sure to only compare homes in close proximity to yours. So, if you live in North Atlanta, GA, only compare your home to others in your neighborhood. If other sellers in your price range have new carpeting, a recently remodeled kitchen or bath, or new flooring throughout, they’ll likely outshine your listing. Research your options and record which home upgrades will give you the most bang for your buck in your market. Hire a professional to avoid any costly DIY mistakes. They can save you time and money, and the end result will likely be just what you were hoping for. Ultimately, working with a professional will reduce your stress and increase your satisfaction with the project.

To avoid hidden problems that may be discovered during an inspection such as foundation damage, rodent activity, or a leaking roof, get a pre-inspection report before putting your home on the market. This will give you time to make the necessary repairs and get your home ready to sell so interested buyers don’t withdraw their offer after they see the inspection report.

2. Your home is priced too high

Pricing a house too high happens more often than you might think. Resisting the urge to overprice your home is never easy. The longer your home stays on the market, the more likely it is that you’ll need to drop the asking price. Typically, if a home sits on the market longer than other homes in your neighborhood, buyers will assume it’s because something is wrong with it.

What’s the solution?

Pricing your home can be complex with several different data points to take into account. Take a look at what similar homes in your area are listed for, research what homes have recently sold for in your neighborhood, and use an online calculator for a home value estimate. Your agent will also be able to work with you to price your home competitively.

Clean and tidy bedroom with neutral tones

3. Your home is cluttered and dirty

It happens to all of us. Your daily mess just becomes junk that you overlook day-by-day. But trust me – the piles of paper, boxes of toys, and mounds of clothes will definitely be noticed by potential buyers. Clutter will distract buyers from your home’s best features and will make the space appear smaller.

Life gets busy, and sometimes you just don’t have time to clean your home between work, picking the kids off from school, and dropping them off at soccer practice. But, deep cleaning your home is an essential step to selling your house.

What’s the solution?

As you’re decluttering, be sure to pack away family photos, excess books, clothes, and knickknacks. Instead of stashing your stuff in closets, box up what you don’t need and consider renting a storage unit to clear out some of your belongings. You can also donate items or dump any damaged or broken belongings to avoid the same stuff piling up at your new home. You may want to work with a professional to help organize. They will be able to help you make the process much easier and more efficient. 

After you’ve decluttered, the next step is cleaning your house from top to bottom. Wipe and dust every surface, decoration, and window inside and out. Mop and vacuum carpets and floors. Pay attention to the smell of your home, and be sure to get a second opinion. Pets, kids, food, and other conditions can make your home smell and discourage potential homebuyers. If you don’t have the time to do it right, hire a professional cleaning service—it will be worth it. They’ll be able to reach every nook and cranny of your home to leave it shining so you can sell your house quickly and for more money.

4. You haven’t staged your home

One great thing about owning a home is being able to show off your personal taste through furniture, paint colors, photographs, and decorations. But even if your taste isn’t overly bold, it still might not sit well with potential buyers. Buyers want to be able to visualize the home as a good fit for themselves. According to a recent survey, 83% of buyers’ agents agreed that a staged home helped their buyer picture themselves living there. Bright paint colors and decoration may have been your style, but when trying to sell your house, the decor should always be neutral. Potential buyers should be able to focus on the features of your home and not your belongings. 

What’s the solution?

Presenting a well-maintained home and giving a positive first impression is so important when selling your house. And although staging is optional, it really shouldn’t be. A staging professional’s job is to stage your home in a way that will emphasize the property’s strengths and minimize its weak points. This will allow your home to be shown at its maximum potential. They’ll be able to give your home the final touch it needs to stand out from the competition and appeal to the majority of buyers.

Staging a home can be as simple as rearranging furniture or moving large items into storage. Or, you may prefer to have the staging company bring furniture, artwork, decor, lights, greenery, and area rugs to stage your home. If you’re working with a tight budget, focus on the entryway, living room, kitchen, bathrooms, and master bedroom. It’s also important to create a blank canvas by stowing away family photos and any other personal items.

It's important to stage your living room to sell your house

5. Your listing photos are not professional quality

If your home doesn’t need upgrades and it’s priced appropriately, it may be your listing that is falling short. Photos are the first thing a potential homebuyer will see and may determine whether they request a tour or not. Nowadays, poorly-lit pictures captured on an iPhone won’t bring in potential buyers, and research shows that professional photos can help sell your house faster and for more money. Buyers expect top-notch photos that show off your home’s best features. 

What’s the solution?

No matter how great the rest of the listing is, if the photos don’t pique any interest and get buyers excited about touring it, then you likely won’t have any offers. Make your home stand out against the competition with professional photos. Real estate photographers know the correct lighting, angles, and minor details that capture your home’s selling points and will leave a great first impression.

6. Your curb appeal isn’t appealing

Take a walk around your neighborhood and pay attention to the homes that appear inviting and note what about the property makes it that way. Is it the green lawn and the neatly cut hedges? The fresh coat of paint? The stone walkway? Now, walk past your home and try to picture yourself as a potential buyer. What needs work? The first impression your home gets from a buyer is important and it often starts with the exterior of your home. Strong curb appeal has the ability to bring more buyers to your door.

What’s the solution?

Preparing the exterior of your home is just as important as staging the interior. After all, many buyers won’t feel compelled to tour your home if it doesn’t look nice from the outside. A well-maintained exterior, including everything from landscaping to exterior paint, will bring buyers through your door increasing the likeliness of your home selling quickly. 

Hire a professional to spruce up the exterior of your home. Your lawn, hedges, trees, and other plants should be neat and there shouldn’t be any visible weeds. Have your windows washed, and consider hiring a power washing company to clean your siding and any walkways. If you can, add an outdoor living space in your backyard, perhaps a deck or patio.

The longer your home sits on the market, the less appealing it will become to buyers. Identify what is preventing potential buyers from making any offers and fix the issues as soon as possible. This way, you can sell your house quickly.

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Mortgage Rates Sink to All-Time Low of 2.72% | #YajneshRai #01924991 #SangeetaRai #02026129

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Mortgage Rates Sink to All-Time Low of 2.72% | Realtor Magazine

Mortgage rates for 30, 15, ARM. Full information at http://www.freddiemac.com/pmms/

© REALTOR® MAGAZINE

Home buyers and refinancing homeowners likely have never locked in this low of rate before for the 30-year fixed-rate mortgage. For the 13th time this year, the 30-year fixed-rate mortgage set a record low, averaging 2.72% this week, according to Freddie Mac’s records, which date back to 1971. The previous all-time low was set the week of Nov. 5, when 30-year rates averaged 2.78%.

“Weaker consumer spending data, which accounts for the majority of economic growth, drove mortgage rates to a new record low,” says Sam Khater, Freddie Mac’s chief economist. “While economic growth remains unstable, strong housing demand continues to have a domino effect on many other segments of the economy.”

The ultra-low mortgage rates are boosting homebuying activity to the highest level since 2006, the National Association of REALTORS® reports. In October, existing-home sales jumped by 27% annually, with activity in the Midwest and South reaching all-time highs. Home construction is also rising, with single-family housing starts reaching the highest production rate since 2007.

“With mortgage rates hovering at record lows, more houses will be built as demand rises and homebuilders can borrow money at a cheaper rate to finance the construction,” said Nadia Evangelou, a research economist for NAR,at the association’s Economists’ Outlook blog.

Freddie Mac reports the following national averages with mortgage rates for the week ending Nov. 19:

  • 30-year fixed-rate mortgages: averaged 2.72%, with an average 0.7 point, falling from last week’s 2.84% average. Last year at this time, 30-year rates averaged 3.66%.
  • 15-year fixed-rate mortgages: averaged 2.28%, with an average 0.6 point, dropping from last week’s 2.34% average. A year ago, 15-year rates averaged 3.15%.
  • 5-year hybrid adjustable-rate mortgages: averaged 2.85%, with an average 0.3 point, dropping from last week’s 3.11% average. A year ago, 5-year ARMs averaged 3.39%.

Freddie Mac reports average commitment rates along with average points to better reflect the total upfront cost of obtaining the mortgage.

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What is a Mortgage and How Do They Work? – Redfin | #YajneshRai #01924991 #SangeetaRai #02026129

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What is a Mortgage and How Do They Work? – Redfin

As a first-time homebuyer, you might be confused or even bewildered by the mortgage process and its many moving parts. Here’s what you need to know about what a mortgage is and how it works for all parties – when you peek behind the curtain, you’ll realize it’s just another tool for purchasing a home.

Whether you are buying a house in Atlanta or a condo in Miami, it is a big decision. From start to finish, it can take a year or more to plan, save for a downpayment, find a lender, and then to find and make an offer on the house you want to buy. But before you get ahead of yourself, first things first, understanding what a mortgage actually is and how it works. In short, a mortgage is a loan from a lending institution to cover a home’s purchase. The bank or lending institution holds the note for the house as collateral for the loan. The mortgage is also called a “lien against property,” or sometimes referred to as a “claim on property.”

what is a mortgage you say?

You can start by using an online mortgage calculator, or visit with your bank or another mortgage lender so you’ll know what you can afford in terms of a mortgage payment. This will also help you understand how much you may need to save for a downpayment. 

A mortgage loan has 3 components:

  1. Principal: The principle is the difference between the home’s final purchase price and the amount of your down payment. For example, if you provide $20,000 as a downpayment for the home you plan to buy for $200,000, your principal loan amount would be $180,000. 
  2. Interest: The loan’s interest is what you pay the bank or lender in exchange for providing and servicing the loan. This amount is based on the loan’s interest rate, which will vary depending on the term (length of time) and type of loan. 
  3. Downpayment: The downpayment is the amount you pay upfront, at the time of the purchase transaction, as your direct financial interest in the home.

As you make regular monthly mortgage payments, each payment includes the monthly interest on the outstanding loan balance and an amount that pays down the principal. When your principal amount is high at the beginning of your loan, most of your monthly payment goes to paying off interest. If you can, some people pay an additional amount toward the principal in efforts to pay less in interest over the life of the loan.

What is a mortgage?

Additional costs first-time homebuyers often include in a mortgage payment. 

As a homeowner, you are responsible for costs in addition to your mortgage payment, such as property taxes, homeowner’s insurance, and possibly private mortgage insurance. Some people choose to tie these payments into their mortgage, rather than make separate payments. The bank then makes an all-inclusive payment to ensure the homeowner stays current on these obligations.

  • Property taxes: Your county and municipal government assess property taxes on your home and land, which go to fund schools, roads, and other local government services. 
  • Homeowners Insurance: You can purchase homeowner’s insurance through an insurance provider of your choice. This insurance covers most or all of the cost if you experience major property damage or a loss, such as roof damage from a storm or to repair or rebuild after a fire. Your lender will require you to have homeowners insurance. 
  • Private mortgage insurance (PMI): If your down payment is less than 20%, your lender may require you to have private mortgage insurance until you have acquired 20% equity in your home, usually meaning you’ll need to pay off 20% of the original home loan.. This insurance protects the lender in case you default on the loan. 

There are many types of mortgage lenders and many types of mortgages. 

Know that you have options. You can – and should – shop around for the best rates and payment plans. You may even be able to find programs that eliminate PMI requirements or allow you to purchase the home without a downpayment. 

Mortgages fall into two basic categories: Fixed-rate or adjustable-rate. 

  • A fixed-rate mortgage maintains the same payment of principal at an interest rate set for the loan term. Lenders offer these mortgages for either a 30-year term or 15-year term. On a 30-year fixed-rate mortgage, you will pay more over the loan’s lifetime because you will be paying interest for the life of the loan, but the monthly mortgage payment will remain the same as long as you have the loan. On a 15-year fixed-rate loan, your monthly payments will be higher, but more of each payment applies to the principal to pay off the home in 15 years. The total amount of interest you pay will be less.
  • An adjustable-rate mortgage (ARM) has an interest rate that is subject to change over the loan term. An ARM usually carries a lower interest rate for the first few years but then adjusts after a set period, typically five years, to a new rate tied to market interest rates. A first-time homebuyer may benefit from a lower mortgage payment for the first few years, but faces the risk that the rate will increase when the adjustment date comes around.

What is a mortgage

Fixed-rate and adjustable mortgages are the basis for specific loan programs. 

  • For borrowers who qualify, a Federal Housing Administration loan or FHA loan allows for a low down payment, typically requiring only 3.5%. This can be a great option for many first time homebuyers or homebuyers that have little in terms of a downpayment. However, because you are not making a standard downpayment of 20%, your lender will require you to pay for PMI.
  • A Veterans Affairs or VA loan is offered to anyone who served or is currently serving in the U.S. military. You must have served 90 consecutive days during wartime, 180 consecutive days during peacetime, or six years in the reserves to qualify. These loans typically require no down payment and do not carry PMI requirements, and come with a reasonable interest rate. 
  • Buyers in rural areas may qualify for a U.S. Department of Agriculture or USDA loan. These loans also do not require a downpayment. They have reasonable interest rates, and your income and location will determine if you qualify. 

Make no mistake, a mortgage is a big commitment. When you understand how it works and what options are available to you, you are in a good position to start talking to lenders as you shop around to find the loan option that best suits your individual circumstances. 

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Single-Family Rentals Can Be a Good Deal for Investors | #YajneshRai #01924991 #SangeetaRai #02026129

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Single-Family Rentals Can Be a Good Deal for Investors | Realtor Magazine

When real estate professionals think about a rental property, they often picture large or maybe 10-unit apartment buildings. But they should be envisioning single-family homes, said Bill Lublin, CEO of Century 21 Advantage Gold and president of Lublin Corp Property Management in Southampton, Pa. Single-family rentals have increased by 31% in the past 10 years and make up 42% of the housing stock, Lublin noted during his session about buying, selling, and managing single-family rentals at the virtual 2020 REALTORS® Conference & Expo on Monday.

“We’ve been in an HGTV world, where people buy, fix, and flip properties in an hour—without any real surprises—and making a bunch of money,” Lublin said. “When investors buy a home to flip, they have the cost of buying, repairing, and selling it. When they buy a single-family rental, they only have to worry about acquisition costs. They’ll amortize those over time and get some deductions. They don’t have to worry about selling costs right away or short-term capital gains.”

Single-family rentals are a good way for entry-level investors to begin, Lublin added. They’re generally less expensive than duplexes, and families that rent them typically stay longer, reducing turnover costs. Investors usually don’t have to do as much renovation to make a rental attractive as they would for a “fix-and-flip.” In addition, rentals offer four financial benefits: income, depreciation, equity, and appreciation. Income wins over profits, Lublin said. “With profit, you get it, spend it, and move on. Profit is fleeting, but income is forever,” he added.

Lublin cited a case in Philadelphia: a rowhouse he sold to an investor for $85,000 about four years ago. While the house was dated, it was in decent shape. “The new investor did minimal renovation and rented the property immediately. Now, because we’ve seen some significant appreciation recently, that home is worth probably $150,000—an increase that isn’t taxable because they’ve not sold it and realized the gain. And they’ve received income during that time.”

Despite the benefits of investing in single-family rentals, selling to investors is a skill, according to Lublin. Initially, “you need to figure out what investors’ goals are. Later, you have to review with them whether they’re meeting goals. And in doing that, you’re looking at the ROI.

“A really simple rule—whether you’re selling or buying—is the 1% rule,” Lublin continued. “If the rent is 1% of the sale price, it’s a good return.” Lublin said this method doesn’t account for taxes but is a “quick and dirty way to determine whether a property is a good investment for your client or yourself.”

The Property Management Move

In the 2008 downturn, some real estate professionals extended their businesses into managing rental properties. “Management fees aren’t a lot of money,” Lublin said. “But they are a steady flow of income, which is really useful in a slower market if you have a large enough portfolio.”

Before making such a move, Lublin advised asking some tough questions to determine “whether the juice is worth the squeeze:”

  • Are you willing to do what’s necessary to make sure rents are collected?
  • Will you be able to manage the expenses, which means making sure repair costs are as low as possible, income is collected, taxes paid, and licenses maintained?
  • Can you obtain and retain tenants?
  • Do you know what your municipality requires to keep the property in compliance with taxes, licenses, and inspections?

Then there’s the technology. Some real estate companies say the only software an agent uses every day is the MLS, Lublin said. “You’ll need to be in property management programs every day to keep track of income and expenses, report to your clients, and make sure you’re making enough money to keep the doors open.” 

You don’t have to swing for the fence every time you make an investment, Lublin said. If you try to get a base hit—something that’s a good deal—you can generate income over the long haul.

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More Buyers Want Space for Mom and Dad | #YajneshRai #01924991 #SangeetaRai #02026129

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More Buyers Want Space for Mom and Dad | Realtor Magazine

As the pandemic continues, more home buyers are looking for properties that can house their older family members. The goal for these buyers is to keep their aging family members out of senior living—particularly group setting facilities, which have been on heightened alert during the COVID-19 outbreak. This is translating to the desire for larger homes that can accommodate more family members, The Wall Street Journal reports.

The National Association of REALTORS®’ newly released 2020 Profile of Home Buyer and Sellers showed that buyers purchasing a home since the start of the pandemic have been more likely to purchase a multigenerational home—15% versus 11% who purchased prior to 2020. Home buyers cited multiple reasons, such as the health and caretaking of aging parents and relatives, cost savings, the desire to spend more time with aging parents and relatives, and the need for the delayed independence of children. They also said buying a multigenerational home allowed them to pool multiple incomes to purchase a larger home.

Meanwhile, occupancy at assisted-living facilities and independent living centers decreased by more than 2.5% in each of the last two quarters since the pandemic, according to the National Investment Center for Seniors Housing & Care, as reported by The Wall Street Journal.

Home builders are increasingly trying to respond to the call for homes that can accommodate multiple generations, such as with two primary owner suites, including one on the main floor. In response to the uptick in demand, Lennar Corp., a homebuilding giant, says it expects to increase its line of Next Gen homes by more than 20% compared with last year, The Wall Street Journal reports. M/I Homes says it has debuted a new floor plan that includes a separate multiroom space on the main floor of the home that can serve as a room for an aging parent or home office.

Builders of accessory dwelling units—backyard houses that can serve as separate living quarter—are reporting a rapid rise in business since the pandemic began.

“We’re hearing stories about how people went to visit their family members and couldn’t go into the facility and talked to them through the window,” Daniel Blumenkrantz, analyst at Urbaneer ADU, a Freehold, N.J.–based company, told The Wall Street Journal. “We figured there has to be a way around this.”

Urbaneer ADU will install an accessory dwelling unit on a property and charge an installation fee, often ranging from $7,500 to $10,000. The customer then pays $2,000 a month for a minimum of five years. The company removes the cottage when it’s no longer needed. On its website, the company says that the cottage plus in-home care is cheaper than assisted living, which likely would be dependent on the person’s health circumstances and location.

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5 Tips for Moving During COVID-19 – Stay Informed and Inspired | #YajneshRai #01924991 #SangeetaRai #02026129

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5 Tips for Moving During COVID-19 – Stay Informed and Inspired

By taking extra safety precautions and minimizing social contact, you can still move safely.

Amid travel bans, widespread stay-at-home orders and social-distancing mandates, millions of Americans have adapted to the changes brought about by COVID-19. Countless events have been rescheduled or cancelled, but for a few people — including those who already made plans to move — staying put is simply not an option. 

If you are about to move, you can still pull it off with a little extra planning and a few precautionary steps.

Here are some tips for making your move as safe, seamless and stress-free as possible. 

DIY if possible

Even though most states have designated moving services as “essential” and therefore still able to operate, many smaller companies have reduced hours or have paused business altogether. If you can, try to manage the move on your own.

If you need help, do your homework on the companies operating in your area. Call to ask about sanitation procedures, whether the movers have necessary supplies (like masks, gloves and booties), and confirm there is a reasonable cancellation policy in the event that you need to change your plans.  

Minimize contact

If you’re working with a moving company, ask for a virtual quote and see if the company offers fully contactless service. 

Forgo handshakes, for obvious reasons. A smile and a generous tip (sent through Venmo, PayPal or another contactless digital platform) are a welcome substitute. 

Take extra sanitary precautions

  • Wear masks, gloves and booties. If you’re hiring a moving company, they’ll likely bring similar supplies for their workers, but consider having additional hygiene products available.
  • Disinfect frequently touched objects and surfaces, paying particular attention to door knobs and handles.
  • Place soap and paper towels next to sinks and hand sanitizer by doors.
  • Buy new boxes: The coronavirus has been found to live on cardboard for up to 24 hours, so this might not be the time to pick up used moving supplies from stores that are recycling them. You can also use boxes that you already have in your home. 

Be transparent and flexible

In advance of your move, reach out to your neighbors — especially if you live in an apartment building — and share the date and time you plan to move. This gives everyone in your direct vicinity an opportunity to avoid unnecessary contact and let you know if your timing is a problem.

If you or any family members are experiencing coronavirus symptoms, postpone your moving plans. Though rescheduling is a pain, the health and safety of your community comes first. 

Help those in need and lighten your load

Even in the best of circumstances, nearly 40 million Americans are unable to afford groceries. As COVID-19 forces school closures, soup kitchen shutdowns and a surge of layoffs, the need for anti-hunger provisions is greater than ever. Donate your shelf-stable items to a local food bank or to Move for Hunger, a national organization that works with professional moving companies and their customers to feed those in need.

Moving is hard work no matter what, and it’s especially challenging right now. But by taking extra precautions, you can — and will — get past this hurdle.  

Additional resources:

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News of COVID-19 Vaccine Lifts Mortgage Rates | #YajneshRai #01924991 #SangeetaRai #02026129

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News of COVID-19 Vaccine Lifts Mortgage Rates | Realtor Magazine

Mortgage rates for 30, 15, ARM. Full information at http://www.freddiemac.com/pmms/

© REALTOR® MAGAZINE

 

The interest rate for a 30-year fixed-rate mortgage rose to a 2.84% average this week but remains near all-time lows. Last week, the rate for a 30-year fixed-rate mortgage set a record low of 2.78%. “Mortgage rates jumped this week as a result of positive news about a COVID-19 vaccine,” says Sam Khater, Freddie Mac’s chief economist. “Despite this rise, mortgage rates remain about a percentage point below a year ago, and the low-rate environment is supportive of both purchase and refinance demand. Heading into late fall, the housing market continues to grow and buttress the economy.”

Freddie Mac reports the following national averages with mortgage rates for the week ending Nov. 12:

  • 30-year fixed-rate mortgages: Averaged 2.84%, with an average 0.7 point, up from last week’s record 2.78% average. A year ago, 30-year rates averaged 3.75%.
  • 15-year fixed-rate mortgages: Averaged 2.34%, with an average 0.6 point, increasing from last week’s 2.32%. A year ago, 15-year rates averaged 3.20%.
  • 5-year hybrid adjustable-rate mortgages: Averaged 3.11%, with an average 0.4 point, increasing from last week’s 2.89% average. A year ago, 5-year ARMs averaged 3.44%.

Freddie Mac reports average commitment rates along with points to better reflect the total upfront cost of obtaining a mortgage.

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Buyers Pause During COVID-19 Surge, Election | #YajneshRai #01924991 #SangeetaRai #02026129

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Buyers Pause During COVID-19 Surge, Election | Realtor Magazine

Home shopping was down last week as the nation focused its attention on a heated presidential election and a surging number of coronavirus cases across the country, realtor.com® reports in its Weekly Housing Report.

Mortgage demand from home buyers dropped to the lowest level in six months, the Mortgage Bankers Association reported on Wednesday. Its weekly mortgage index showed that loan applications to buy a home dropped 3% last week. Applications are still 16% higher than a year ago, however. But the latest dip in applications marked the sixth time in seven weeks that the index has seen a decrease, and last week’s marked its lowest level since May 2020, MBA reports.

“Between the presidential election and a new wave of coronavirus cases, buyers and sellers had a lot of reasons to pause last week,” says Danielle Hale, realtor.com®’s chief economist. “The big question is whether both buyers and sellers will jump back into the market after last week’s break. With mortgage rates expected to rise on news of a likely vaccine, buyers may have reason to jump back in and find a home sooner rather than later, but sellers may be more inclined to stay on hold. Thus, even as overall activity slows, we may very well see continued price growth and quick sales.”

A limited number of homes for sale likely continues to constrain buyers too. Newly listed properties are down by double digits compared to a year ago. “New listings are a crucial ingredient for home sales, and they will need to make a strong comeback for housing activity to continue,” realtor.com® notes in its report.

Meanwhile, listing prices continue to see double-digit growth, up 12.9% over last year, according to realtor.com® data. Homes that are on the market are selling fast, with the number of days on the market nearly two weeks fewer than last year. If homes continue to sell quickly, “it is a good indication that buyers have no intention of taking the holidays off this year, but continued steadiness in the year-over-year difference would mean we’re seeing at least some of the usual seasonal pause in housing activity,” realtor.com® notes in its report.

 

table showing sales data from realtor.com. Visit source link at the end of this article for more information.

© realtor.com

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Buyers Face Double-Digit Home Price Gains Across Metro Areas | #YajneshRai #01924991 #SangeetaRai #02026129

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Buyers Face Double-Digit Home Price Gains Across Metro Areas | Realtor Magazine

The 10 priciest metro areas as of the third quarter were:

  1. San Jose, Calif.: $1.40 million
  2. San Francisco: $1.125 million
  3. Anaheim, Calif.: $910,000
  4. Urban Honolulu, Hawaii: $866,200
  5. San Diego: $729,000
  6. Los Angeles: $708,900
  7. Boulder, Colo.: $673,400
  8. Seattle: $617,700
  9. Bridgeport, Conn.: $591,400
  10. Boston: $588,100

 

Home prices continue to climb in a market with limited number of homes for sale and high buyer demand. The majority of major metros across the U.S. posted double-digit price gains in the third quarter. Single-family existing home prices increased in all 181 metro areas tracked in the National Association of REALTORS®’ latest quarterly report, released Thursday.

The price of single-family homes surged 12% year over year to $313,500. The Western region of the U.S. led the country in price appreciation, up 13.7%, followed closely by the Northeast at 13.3%, the South at 11.4%, and the Midwest at 11.1%.

Sixty-five percent of the metro areas tracked by NAR reported double-digit price gains compared to a year ago. As a comparison, in the second quarter, less than 10% of the metro areas recorded double-digit increases.

The housing markets seeing the largest price spikes in the third quarter were led by Bridgeport, Conn. (27.3%); Crestview, Fla. (27.1%); Pittsfield, Mass. (26.9%); Kingston, N.Y. (21.5%); Atlantic City, N.J. (21.5%); Boise, Idaho (20.6%); Wilmington, N.C. (20.6%); Barnstable, Mass. (19.4%); Memphis, Tenn. (19.1%); and Youngstown, Ohio (19.1%).

“In light of the pandemic, prices jumped in a number of metros that contain larger properties and open space—where families could find extra rooms, including areas for an at-home office,” says Lawrence Yun, NAR’s chief economist.

Home prices are growing four times as fast as median family incomes. Mortgage rates are at record lows—the 30-year fixed-rate mortgage averaged 3.01% in the third quarter—which is offering savings in financing the home purchase amid rising home prices.

“Favorable mortgage rates will continue to bring fresh buyers to the market,” Yun says. “However, the affordability situation will not improve even with low interest rates because housing prices are increasing much too fast.”

Indeed, rapidly rising home prices are taking a toll on affordability, Yun says. The monthly mortgage payment on a typical existing single-family home with a 30-year fixed-rate mortgage and 20% down payment increased to $1,059 in the third quarter. This is up from $1,019 in the second quarter.

“As home prices increase both too quickly and too significantly, first-time buyers will increasingly face difficulty in coming up with a down payment,” Yun says. “Transforming raw land into developable lots and new supply are clearly needed to help tame the home price growth.”

Ongoing housing inventory shortages are blamed on high home prices. At the end of the third quarter, 1.47 million existing homes were available for sale, which is 19.2% lower than a year ago.

 

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What Hurts Property Value? 8 Things to Address Now | #YajneshRai #01924991 #SangeetaRai #02026129

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What Hurts Property Value? 8 Things to Address Now

Property values fluctuate as a result of many factors, and as a homeowner, it’s important to be aware of factors that can drive home value down. Some of these factors are out of your control, such as market conditions, interest rates, and the economy, while others are very much in your control. From unappealing renovations to neglecting maintenance on your home, some projects, or lack thereof, can negatively impact your property value. It’s best to be aware of what hurts property value so you can protect your home and get the most ROI when it comes time to sell.

white two story home with curb appeal

1) DIY projects gone wrong

Many homeowners take on home improvement projects to not only make their space more livable and enjoyable but to also add value to their greatest investment. Whether it be a bathroom addition, adding a deck, or purchasing a fixer-upper with the promise of profit for flipping it – most people start a project with the idea that it will increase the value of the home. As exciting as the projects may be, they can sometimes turn out not as expected and hurt your property value. 

Are you wanting to build a deck, extend the kitchen, or remodel the bathroom? Even if you’re an expert at smaller DIY projects, it’s better to leave the bigger remodels and renovations to a professional. If not executed properly, they can hurt your property value.

 2) Lack of curb appeal

First impressions make a difference when selling a home. So, your curb appeal should entice prospective buyers and help your home sell faster. If you’ve noticed the exterior paint is chipping off or your trees and shrubs have seen better days, chances are potential buyers will notice too. Luckily, you can achieve great curb appeal with some minor adjustments. 

  • Update the exterior paint. The color of your home is oftentimes one of the first things a buyer will notice. Faded, chipped, and flaking paint can dramatically decrease your curb appeal and hurt your property value. Hire a professional painter and try to stick with a neutral color for the exterior of your home. A fresh coat of paint will do wonders for your home’s appearance.
  • Update the exterior lighting. If the pathway leading to your front door is dimly lit or your fixtures are outdated, now is the time to update the exterior lighting. Exterior lighting helps your home feel more inviting and complements your landscaping. From post lights, LED lights, solar lights, and wall mounts, the options are endless.
  • Switch out your old fence. Worn fences are an eye-sore and can take the attention away from your home and hurt your property value. Replacing your fence for a new one can give your yard the boost it needs by enhancing the greenery, and showing prospective buyers that you care. Fencing comes in a variety of different options such as wood, vinyl, aluminum, wrought iron, and composite. Consult with professionals to determine what material is best for you.
  • Hire a professional landscaper. When selling your home, it’s best to go with an easy-to-care-for and clean landscape design to appeal to buyers, and increase the property value of your house. Simply edging the beds, mulching the garden, and pruning the trees and hedges can transform any landscape. Consider working with a professional landscaper to maximize your curb appeal.
  • Wash the windows and the siding. It doesn’t take long for your house and windows to form a layer of dust, dirt, fingerprints, or even algae. This can leave your house looking dingy and gray and hurting your property value. Hire a professional for regular cleaning to avoid paint stripping, splinters, and mold and mildew problems.
  • Replace your front door. It’s no surprise that front doors quickly begin to look worn and tired with daily use and harsh weather. Replacing your front door is a quick and cost-effective way to add curb appeal or add a pop of color to your home. 

3) Unsightly interior wall paint

Just like exterior house paint, streaky, chipped, or low-quality paint could discourage potential homebuyers and hurt your property value. A fresh coat of neutral paint on the cabinets, walls, and trim can make all the difference. Consider leaving the painting to the professionals. This way, you’ll avoid the chances of buying the wrong brush or roller, using too much, or not enough paint, or any other common painting mistakes homeowners can make. 

Busy and bright wallpaper, tiles, or flooring can also divert the attention of the buyers away from your home. The best rule of thumb is to always choose neutral options for permanent items. Then incorporate color with your decor and furnishings.

4) Lack of upkeep

It’s important and necessary to keep your home in great condition and regularly perform general home maintenance chores. Letting your home fall into disarray and neglecting it will hurt your property value and could have dire consequences on your list price. Buyers will want to negotiate repairs to avoid any major expenses following the sale. This is why most buyers require an inspection contingency in their contract. 

If something breaks, be sure to fix it. And if you don’t know how to fix it, hire someone who does. This will prevent any issues from getting out of hand. It’s often more expensive to remedy any problems the longer you wait. Keep an eye out for any problems with your roof, foundation, HVAC system, gutters, and if a rodent or pest infestation emerges. If you develop any of these issues it’s important to hire a professional immediately. 

modern living room

5) Wall to wall carpeting

Your carpet will be in great condition during the first few years of owning your home, but will quickly begin to show signs of use, start retaining odors, and can be difficult to keep clean. Not only will buyers be wary of wall to wall carpeting because it can be expensive to replace, but it can also collect indoor allergens. If possible, it’s best to stray away from carpet and opt for hardwood, laminate, or tile flooring. 

If your home does have carpet, be sure to get it professionally cleaned periodically to prolong the life of it. It’s also a good idea to have it deep cleaned before listing your home for sale.

6) Excessive clutter can hurt property value

Every home manages to accumulate belongings throughout the years, and you usually don’t realize just how much clutter you’ve collected until you’re about to list your home. Just as dirt and grime build-up, so can clutter. If your room is overcrowded with stuff, it’s a good idea to clear some of your belongings out. Donate items you no longer need or want, and find hidden, permanent homes for the items you use just once in a while. 

Decluttering is an inexpensive way to add value. It can, however, be a big job for just one person. Consider hiring a professional organizer and tackle the project together. After you’ve donated what you can, research a local junk removal and hauling service to collect the rest of your stuff – anything from mattresses and old appliances to electronics and unwanted furniture.

7) Unpleasant smells

Not only do offensive smells leave a bad and lasting impression, but they can also hurt your property value. Whether the lingering odor is cigarette smoke, pet odor, or mold, it’s best to identify the root of the smell and eliminate it. Avoid masking the smell with a strong perfume or fragrance. 

To avoid unpleasant smells altogether, it’s best to keep your home clean. Routine cleaning includes vacuuming and dusting regularly, wiping down countertops and surfaces, and cleaning the bathroom and kitchen. Consider having your home professionally cleaned as you see fit. Most services allow you to choose the frequency of visits to suit your needs.

8) Unnecessary upgrades

Most of the time, home renovations and projects will increase the property value of a home. However, there are certain upgrades that can actually make your home less attractive at resale and can backfire. For example, if you live somewhere where the climate is generally cooler, perhaps Portland, OR or Twin Cities, MN, adding a backyard pool could make your home less desirable and hurt the property value. Or, ripping out a closet or bathroom to create a larger bedroom is generally unappealing to a lot of buyers and could be a costly mistake.

Other updates such as installing a new roof, adding insulation, and replacing windows will generally increase property value because you’re improving the efficiency and safety of the home. Updating your home’s electrical and refinishing hardwood floors can also add to your home appraisal value.

As a homeowner, keeping your home in optimal condition and making necessary updates over the years is key to getting top dollar when it comes time to sell.

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