Yajnesh Rai

How Much Does Curb Appeal Affect Home Value? | Realtor Magazine

Homes with high curb appeal tend to sell for an average of 7% more than similar houses with an uninviting exterior, according to a joint study by the University of Alabama and the University of Texas at Arlington. Further, the premium rises to as high as 14% in slower real estate markets with greater housing inventory, shows the study, which was published in the Journal of Real Estate Finance and Economics.

Researchers examined Google Street View photos and sales data from 88,980 properties in the Denver metro area to find how much curb appeal matters to a home’s value. The researchers found that the curb appeal of neighboring properties also has an impact on a home’s value. The appearance of the yard next door accounts for about a third of a home’s overall premium, the study notes.

It’s common knowledge that curb appeal affects a home’s value, but quantifying the financial impact is a challenge, Sriram Villupuram, a senior author of the study and an associate professor at UT Arlington, told The Wall Street Journal. “It’s observable, but not quantifiable,” Villupuram says. The researchers manually scored a set of properties using Google Street View on a scale of one to four (one indicates lowest curb appeal; four indicates highest).

Researchers considered homes to have low curb appeal if the property includes blemishes like a broken pavement or overgrown grass. Homes were considered to have high curb appeal if they included features like well-kept lawns and professional landscaping.

Many appraisers evaluate a home based on interior features like the number of bedrooms and bathrooms, square footage, and home improvements. But Villupuram told the Journal that the study’s ultimate goal is to create an algorithm that could be used to automate assessments of curb appeal. Villupuram says that could make it easier for large investors, banks, and institutions to include such assessments in their property appraisals.

Survey Reveals the Most Common Roommate Gripes | Realtor Magazine

As rents increase, more people may take on roommates to try to curb costs. At least one in three adults live with at least one adult roommate who isn’t their romantic partner or a college student, according to a 2018 Pew Research Center study.

But who makes up the perfect roommate? Apartment Guide surveyed more than 1,000 Americans to find the perfect—or not-so-perfect—traits.

In general, researchers found that people who had more than one roommate tended to be less satisfied with their living situation than those who just had one roommate. Those living with their friends, family (32%), and co-workers (about 30%) were the most likely to be happy with their roommates.

The top tension points between roommates seems to be mostly centered around cleanliness of a space, rent, and communication, the Apartment Guide study finds.

 

© Apartment Guide

 

 

Home Seller Profits Climb to a 13-Year High | Realtor Magazine

Home sellers nationwide felt richer at resale in 2019. The average seller saw a home price gain of $65,500 on a typical sale, which is up from $58,100 the year prior, ATTOM Data Solutions reports in a new study. This marks the highest level since 2006.

That also represents a 34% average return on their investment compared to the original purchase price, which is also the highest average home seller ROI since 2006.

“The nation’s housing boom kept roaring along in 2019 as prices hit a new record, returning ever-higher profits to home sellers and posing even greater challenges for buyers seeking bargains,” says Todd Teta, chief product officer at ATTOM Data Solutions. “But there were signs that the market was losing some steam last year, as profits and profit margins increased at the slowest pace since 2011. While low mortgage rates are propping up prices, the declining progress suggests some uncertainty going into the 2020 buying season.”

Homeowners in western states continued to see the highest returns. ATTOM Data Solutions’ researchers found that the metros with the highest home seller ROIs were in the following areas:

• San Jose, Calif.: 82.8%
• San Francisco: 72.8%
• Seattle: 65.6%
• Merced, Calif.: 63.2%
• Salem, Ore.: 62.1%

Meanwhile, overall home prices continued to rise in 2019. The biggest year-over-year increases in median home prices in 2019 were: South Bend, Ind. (up 18.4%); Boise City, Idaho (up 12.6%); Spokane, Wash. (up 10.9%); Atlantic City, N.J. (up 10.6%); and Salt Lake City (up 9.6%).

97-Year-Olds Can Still Get a 30-Year Mortgage | Realtor Magazine

Older Americans may not realize that they can still qualify for a mortgage, even though the Equal Credit Opportunity Act forbids discrimination in the mortgage market on the basis of age.

Yet, Mary Babinski, a senior loan officer with Motto Mortgage Champions in Trinity, Fla., told The Wall Street Journal that when a 97-year-old applicant came to inquire about a mortgage, he was even surprised he could still qualify for a 30-year mortgage. Older borrowers are eligible to get loans that will expire even up to their 130th birthdays.

More lenders are trying to promote to retirees that they can still qualify with special lending programs geared to them.

Borrowers over the age of 65 comprise about 10% of all mortgages that are originated each year, according to the Federal Housing Finance Agency.

But without a full-time job any longer, some retirees may wonder how they’ll qualify with limited monthly earnings. Lenders are qualifying older adults for a mortgage based on their pensions, Social Security, dividends, and interest they have available. They’re also showing more willingness to work with retirees to help qualify them based on either their income, distributions, or assets.

Jumbo mortgages aren’t off the table either. Richard Barenblatt, a mortgage specialist with GuardHill Financial in New York, told WSJ that he was able to get an 83-year-old retired Manhattan co-op owner a $1 million, 10-year, interest-only adjustable-rate mortgage for a refinance at a “highly competitive rate.”

How Much Savings a Higher Credit Score Can Unlock | Realtor Magazine

A higher credit score could mean thousands of dollars in savings on a mortgage, according to a new study from LendingTree that compares very good credit scores to fair ones.

A fair credit score is considered in the range of 580 to 669, while a very good credit score ranges from 740 to 799.

The average borrower with a fair credit score will pay about $261,076 in total interest over the lifetime of their mortgage. On the other hand, a borrower with a very good score will pay $219,660—a $41,416 difference.

When LendingTree broke down the most common type of debts—credit cards, student loans, auto, and more—mortgages occupied the highest in interest paid by a borrower by far.

What Exactly Do Closing Costs Cover? | Realtor Magazine

A home costs more than just the sale price. For example, closing costs—which make up about 2% to 5% of the home’s purchase price—are a major added expense. Michael Hyman, a research data specialist at the National Association of REALTORS®, shares the charges that make up closing costs in a post at the association’s Economists’ Outlook blog so that home buyers can be prepared.

Lenders provide a Closing Disclosure at least three business days prior to closing on a mortgage. But buyers will need to budget for these added costs ahead of time to avoid sticker shock days before closing.

Origination fees.This is the fee charged by lenders for processing the application and underwriting it. The fee typically ranges from about 0.5% to 1% of the borrower’s mortgage. Sometimes, it’s higher for smaller loans because “the fixed costs are a higher percentage of a smaller balance,” Hyman notes.

Service charges.These include items such as the appraisal, credit report, flood determination and certificate, tax status, pest inspection, title search and insurance, and survey fees. Appraisals and surveys can cost anywhere between $300 to $500 each. Title services can add up to about $2,000, so buyers may want to shop around for that.

Transfer taxes and recording fees.Transfer taxes vary by state but can run up to 2.7% in parts of New York. “It does not matter if the buyer or seller pays, as long as the transfer tax is paid to the government, so transfer taxes can be negotiated between the buyer and seller,” Hyman writes.

Escrow items.Homeowners insurance, property taxes, and primary mortgage insurance (if applicable) also are added fees. Buyers moving into a homeowners association may need to pay monthly dues for the upkeep of the community.

Hyman offers the following example for how these costs can add up: A buyer is purchasing a $275,100 home with a 5% down payment. The loan amount is $261,345. Closing costs are estimated at 2.5% of the loan value—so $6,533. The buyer made a $2,000 earnest money deposit, so they would need to bring $4,533 in cash at the time of closing. “Altogether, this means that the potential homeowner will need to have access to approximately $18,300 in cash to pay for the down payment and closing cost net of the earnest money deposit,” Hyman says.

Slight Uptick in Mortgage Rates Won’t Stymie Demand | Realtor Magazine

© REALTOR® MAGAZINE

 

The 30-year fixed-rate mortgage averaged 3.65% this week, continuing to entice home buyers to the market with cheaper financing opportunities. “By all accounts, mortgage rates remain low and, along with a strong market, are fueling the consumer-driven economy by boosting purchasing power, which will certainly support housing market activity in the coming months,” says Sam Khater, Freddie Mac’s chief economist.

Still, worsening affordability due to inventory shortages continue to present hurdles for the housing market, Khater notes. The National Association of REALTORS® released a study this week showing how high home prices are stymieing job growth in some metro areas.

Freddie Mac reports the following national averages with mortgage rates for the week ending Jan. 16:

• 30-year fixed-rate mortgages: averaged 3.65%, with an average 0.7 point, rising slightly from last week’s 3.64% average. Last year at this time, 30-year rates averaged 4.45%.
• 15-year fixed-rate mortgages: averaged 3.09%, with an average 0.7 point, inching up slightly from a 3.07% average. A year ago, 15-year rates averaged 3.88%.
• 5-year hybrid adjustable-rate mortgages: averaged 3.39%, with an average 0.3 point, rising from last week’s 3.30% average. A year ago, 5-year ARMs averaged 3.87%

Weekly Mortgage Applications Surge 30% | Realtor Magazine

Homebuyer demand hit its highest level in 11 years, as January continues to shape up to be a hot month for the housing market. Weekly mortgage applications jumped 30% for the week ending Jan. 10, a sign that home buyers are emerging, the Mortgage Bankers Association’s seasonally adjusted index shows.

“The mortgage market saw a strong start to 2020,” says Joel Kan, associate vice president of economic and industry forecasting for the MBA. “Applications increased across the board. Lower rates provided a larger incentive for borrowers to act.”

Indeed, the average 30-year fixed-rate mortgage decreased to its lowest level since September, averaging 3.87%, the MBA reports.

Applications for home purchases, a gauge of home buying activity, jumped 16% last week, reaching the highest level since 2009.

Refinancing applications saw the biggest jump last week among those applying for home loans, a 43% increase over last week. Refinance applications are 109% higher than a year ago. “Refinances increased for both conventional and government loans, as lower rates provided a larger incentive for borrowers to act,” Kan says.

3 Trends Designers Want to Leave in the 2010s | Realtor Magazine

Paint firm Sherwin Williams surveyed 700 professional interior designers to learn the three major trends that they want to leave in the last decade. Here are the trends they said they’re most tired of:

Macramé

The boho trend of last year is fading fast, and one of the signatures of the look–macramé—is quickly losing fans. Twenty-two percent of designers chose macramé as their least favorite design trend in the last decade.

All-gray interiors

Nineteen percent of designers surveyed called all-gray interiors one of the worst trends of the past decade. Gray is beingpushed aside as the reigning neutral. White interiors have slightly more fans: For comparison, only 12% of designers called all-white interiors a fading trend.

Shiplap

Thirteen percent of designers said this wood wall treatment is another trend they hope stays in the 2010s. Shiplap had become a signature of the modern farmhouse style, but now designers are calling it overdone.

The Sherwin Williams survey also showed these other trends were among the ones that designers say they’re growing tired of: tribal prints (11%), concrete countertops and accents (6%), and accent walls (4%).

3 Staging Trends That May Turn Off Buyers | Realtor Magazine

Home staging can show off a home in its best light. Adding simple, updated decor can make a space feel warm and inviting. But there are a few popular trends in home design that stagers say you should avoid when prepping a home for sale:

Too many mixed metals

Mixed metals are a hot home trend, such as combining brushed nickel with matte black. It can add dimension and depth to your design. But don’t go overboard; some fixture finishes don’t look right with others. “Brass nickel is out,” Janice Rosenberg, a real estate pro in Raleigh, N.C., told HomeLight. “Getting rid of that helps update a home. Brushed nickel is fine, and oil rubbed bronze is typically fine.” Designers suggest using two or three mixed metals at the most. Don’t have every fixture be something different. “Pick one that will be the dominant finish, then one or two additionally complementary colors of a cohesive look,” HomeLight notes.

Accent walls

Color pops are a hot trend, and the colors of 2020 are a lot bolder. But neutral palettes still reign in staging. Avoid adding color pops by painting a large wall a bright color for one accent wall. Keep the colors neutral and add pops of color instead through artwork, accessories, furnishings, etc. Wallpaper is another popular trend at the moment but it “can add visual clutter,” Rosenberg says.

Cheap decorations

Stronger personalities are being expressed through current home designs. But the mantra in staging is still to stay neutral and try to appeal to the largest buyer pool. That doesn’t mean stripping a listing of all personality, though. “Don’t just pick up generic, plastic, or cheap decor,” Homes.com notes on its blog. “Have a fresh vase of flowers visible upon entering the home; even go the extra mile to make sure everything is sparkling clean and nicely placed.” Stick with classic choices for home decor so the home appeals to a broad audience of buyers, but also don’t get rid of accents that are unique to showcase the personality of the home.