Archive for the ‘Information for Sellers’ Category

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Good timing

With U.S. mortgage rates lower than they have been in decades, and homes in many areas offered for sale below previous market value, many people are viewing this as the perfect time to buy real estate.

A Place For Everything

Have you just moved into a new place and are loking for room for all of your belongings?  Are you having trouble accommodating all the things you’ve accumulated in your home throughout the years?  Whatever your reasons for wanting more storage space are, there are plenty of ways to get it  .

Holiday Shopping

If you think there’s little point to hunting for a new home during the holidays, think again.  The holiday season can yield some great deals for homebuyers willing to put in the effort at that time of the year.  Here’s why.

Price it Right

Pricing your home right is critical for a quicker sale.  To help prevent your property from lingering on the market longer than it needs to, avoid the following mistakes many seers unfortunately make when establishing their asking price.

It’s A Lock!

Gone are the days when sellers’ keys hung on pegs in real estate offices.  Today it’s sophisticated lockboxes that make your house accessible — and easier to sell.

Read this month’s newsletter here.

By Tim McLaughlin, Sr. Vice President, Weichert Financial

Rates are near historical lows. Housing prices haven’t been this affordable in years, So what are the top reasons supporting the fact that it is a great time to buy that home you have had your eye on (according to the WSJ)?

1. You can get a great deal = buyer’s market. Many of the summer 2011 buyers have purchased or are waiting for spring 2012. An excellent time to beat them to the punch and grab that house of your dreams.

2. Mortgages are cheap. You can get a 30 year loan in the high 3%/low 4% range. What’s not to like? These are the lowest rates on record. As recently as three years ago they were about 6.25%. That drop slashes your monthly repayment by a fifth. When the economy and employment do recover, it is a fair bet that you won’t see these mortgage rates again in your lifetime.

3. You’ll save on taxes. You can deduct the mortgage interest from your income taxes. You can deduct your real estate taxes. And you’ll get a tax break on capital gains down the line when you sell.

4. It’ll be yours. You can have the kitchen and bathrooms you want. You can move the walls, build an extension, or paint everything bright orange if you so desire.

5. You’ll get a better place to live. In many parts of the country right now, it can be really hard to find a good rental given the glut of renter in the marketplace.

6. It offers some inflation protection. No, it’s not perfect. But studies by Professor Karl “Chip” Case (of Case-Shiller), and others, suggest that over the long term housing has tended to beat inflation by a couple of percentage points a year. That’s valuable inflation insurance, especially if you’re young and raising a family and thinking about the next 30 or 40 years.

7. It is forced savings. If you can rent an apartment for say $2,000 month instead of buying one for say $2,400 a month, renting may make sense. But will you save that $400 for your future? A lot of people won’t. Most, I dare say. Thus where is the true value and the savings?

8. Weichert will help make the transaction seamless…ask me how!

by Tim McLaughlin, Sr. Vice President, Weichert Financial

The 30 year Fixed Rate mortgage, continuing to test new lows, dropped below 4% last week for the first time in modern history to 3.99% with .68 points during the week ending Oct. 6, according to Freddie Mac’s weekly survey. A spokesman confirmed that the 30 year’s average of 4.01% with .66 points last week was previously the lowest the weekly rate has been. Freddie has been following rates since its startup in 1970.

While the week to week drop below 4% is only a matter of two basis points, it marks a benchmark level that could have more of a psychological impact on borrowers who qualify for new loans and have a rate high enough to benefit enough from a refinance.

A year ago at this time, the average weekly 30 year rate was 4.27% and the average 15 year rate was 3.72%.
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Pew Research Center out of Washington conducted a survey of over 2,100 adults, of which 57% were current homeowners, 30% were renters, and 13% were prospective buyers, with some interesting results:

• 64% of homeowners whose homes lost value said they expect to recoup the equity losses in the next 3 to 5 years.
• 81% of homeowners (more than 4 out of 5) believe purchasing a home is the best investment an adult can make. By comparison, the number was at 84% back in 1991.

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Did you know?

Fiction: Credit scores can change only once per month or every 30 days.

Fact: On the contrary; each creditor reports information to each credit bureau at different times of the month. This will cause the information and potentially the credit scores to change on a daily basis. For example, American Express may report to Experian on the 1st of the month, Equifax on the 15th and Transunion on the 25th. Thorough review of the credit report is needed to determine what caused the score to change from report to report.

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As One Door Closes, Another One Opens

In 2010, 37.5 million people changed residences in the U.S.  Of these, an estimated 43.7 percent of the movers cited housing-related reasons, such as the desire to live in a new or better home or apartment.

Say “Ahhhh…”

As life grows increasingly stressful, people are increasingly viewing their homes as retreats–and decorating them as such.  Bathrooms are often a primary focus, and the rend today is to design a space devoted to relaxing and rejuvenating.

Table Talk

Negotiating the purchase agreement is arguably the most challenging aspect of byiing a home, particularly in markets that favor sellers.  To strengthen your position at the negotiating table, consider this advice.

Show Ready

How you live in your home when it’s on the market is different from how you normally live in it.  If you’re serious about selling, you need to be prepared for buyers’ eyes at all times.

Stop Loss

Air leaks make your house a less comfortable place to live and a more expensive place to maintain.  Here’s how to spot leaks so that you can remedy them, and prevent money from floating out your windows.

Read this month’s newsletter here.

by Tim McLaughlin, Sr. Vice President, Weichert Financial Services

On Wednesday, the Fed put what is termed as “Operation Twist” into action. “Operation Twist” is a strategy enacted by the Federal Reserve to sell short term Treasuries while simultaneously purchasing longer term Treasuries. The Fed mandated that it would “swap” $400B of short term debt into longer dated securities.

The last time the Fed purchased long term Treasuries was back in the 1960s during the Kennedy administration. The project, started in 1961, was called “Operation Twist.” It was intended to lower long term interest rates (to stimulate investment) while propping up short term interest rates (to attract capital from abroad and support the dollar). Economists generally seem to think the experiment flopped, though Fed policy has changed so much between then and now, and the experiment was on such a small scale, that it’s hard to draw too many conclusions on how “Operation Twist” will fare today.

In addition to the $400B short/long swap, the Fed also announced that it would be reinvesting proceeds of the $1.25T Mortgage Backed Security purchase initiative from the last two years back into the MBS market as the securities pay off to further support the mortgage sector and continue to stimulate low interest rates.

What does this mean for interest rates and tocks? Well, we are two days in, and it has been bad news for Equities (combined with concerns of the European debt crisis) and very good news for Fixed Income Rates. The initial knee jerk reaction is warranted on the announcement. The question is will the momentum sustain for a prolonged period of time, or will the markets start to retrace as the global markets digest the news over the weekend?

For now, 3.99% and lower on a 30 year Fixed Mortgage sounds awfully appetizing. And 2.99% with points on a 15 year Mortgage sounds like the refinance opportunity everyone has been waiting for. Purchase or refinance, the opportunity to capitalize on historically low interest rates is right now. Weichert Financial can help…ask me how!

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Market Down?  Buy Up!

Property values are still down in many areas, causing some homeowners to feel they should just stay put until the housing market turns around.  Before you resign yourself to sitting and waiting until home values rise again, remember, while your house might not sell for as much as you expect in a “normal” market, the same thing also applies to your dream home.  Could now be the time to move “up” in the housing market?

A New Look For Less

It’s a new season; your tastes have changed. You and your significant other are moving in together.  There are many reasons why you might want to change the look of a room–or rooms–in your home.  But if budgetary concerns are keeping you from doing so, you’ll find solutions here.

Analysis Paralysis

Are you so overwhelmed by the home-buying process that you find yourself unable to move forward?  If so, you may suffer from buyer’s paralysis.  Luckily this condition can be cured.

Ready, Set, Move

Most buyers, especially first-time buyers, agree that finding a property in ‘move-in ready’ condition is important to them.  So, sellers, it’s time to roll up you sleeves and get to work.

Weathering the Storm

From high winds to heavy rains, this country is no stranger to extreme weather.  What can you do to help protect your home from storm damage?

Read this month’s newsletter here.

By Tim McLaughlin, Sr. Vice President, Weichert Financial Services

To the borrowing public, lower interest rates generally mean a reason to refinance. Astute borrowers take advantage of low interest rate environments. What is the best plan for attacking a rate friendly market? The following facts are value added for anyone looking to refinance their current home mortgage in 2011.

1. Know Your Value: The number one reason home refinance loans are being rejected is that the appraisal of the clients home didn’t come back as anticipated. Basically, for a lender to refinance your home, there must be a certain level of equity in the transaction to make the scenario work. Otherwise, your refinance scenario may not be approved. Your knowledgeable Weichert Financial Gold Services Manager can help you understand the value and equity in your current home and how to make the transaction work.

2. Dig Up Your Documents: Make sure you have all necessary documents to avoid delays. This includes a copy of your current mortgage statement, current paystub showing year to date earnings, last year’s IRS tax returns (last two years if self-employed), and two forms of personal identification (one must be a government issued photo ID). Other documents may be required as well. If you don’t have these items, it will slow down the process, cause delays, and possibly cause you to miss this low interest rate window.

3. Choosing The Best Product: First off, you have to decide whether you are looking to reduce your payment or whether you are looking to reduce the term of your loan (or possibly both). A higher rate 30 year loan refinanced into a lower rate 30 year loan will reduce your payment. A higher rate 30 year loan refinanced into a lower rate 20 year, 15 year, or 10 year loan may keep your payment somewhat static, but will cut significant years off the duration of your loan and save years of interest (same with a 20 year into a 15/10, or a 15 year into a 10 year). Which scenario is best for you? Again, our knowledgeable Weichert Financial Gold Services Manager can help analyze what is best.

Not many in the markets expected rates to be this low again in August (or in 2011, for that matter). Did you miss the last refinance wave in 2010? Let’s not miss this one.

by Tim McLaughlin, Sr. Vice President, Weichert Financial Services

Should the markets have reacted like they have on the news of a Sovereign US downgrade? Fear sparks unexpected emotions. The downgrade, which was more of a warning to the US to get their finances in order, should have been perceived as nothing more than that. The difference between AAA and AA+ is like splitting hairs. France is AAA and their per capita debt load is significantly larger than ours is. This was more of a “straw that broke the camel’s back” scenario (worries of a double dip recession, concerns over fiscal issues in Europe, digesting what the debt ceiling agreement really means). The reaction to the downgrade (and all global news) appears overblown.

Shouldn’t rates have increased on the downgrade news instead of rallied? In a textbook economic world, absolutely. But the textbooks are obsolete, given the fact that Fixed Income rallied, further supporting the thesis that the downgrade was more scope then substance. Remember, S&P is also the rating agency that rated billions of Subprime paper as AAA, so strength and security is in the eye of the beholder. And if action rings true, the significant rally in Fixed Income solidified the fact that the US debt (Treasuries and Mortgage Backed) is as strong as ever as buyers came in in droves looking for a safe haven.

Mortgage Rates have free-fallen and the Fed came in Tuesday afternoon and said Fed Funds rates would be low “until mid 2013”. What does that mean? Do we go lower? The statement was more of a symbol to support the market then anything. Most of us already thought the Fed Funds would be low for a while longer anyways. But make no mistake – low Fed Funds rates til “mid 2013” does not necessarily equate to low mortgage rates in the same time period. For now, rates are back down at the historical lows of last year. However, alternate forces (Fannie/Freddie/FHA increasing fees, inflation, a pick up in the economy, buyers looking for alternate/higher yielding investments) all could send mortgage rates back up at some point in the future despite where the Fed Funds rate are as the curve could potentially widen, which we have seen in the past.

What to do? Housing is historically affordable and mortgage rates are historically low. Looking to purchase? Missed your 2010 opportunity to refinance? Weichert Financial can help!  Ask me how and capitalize today.

Selling your home quickly and at the price you are asking is every homeowner’s dream. While the real estate market may seem like it is complicated and ever-changing, there are several constants to keep in mind when embarking on the home selling process.

Be certain to consider the following rules of thumb when your home is on the market:

• Tidy Up. Be sure that your home is neat and tidy before potential buyers arrive. Give your home a once over and make sure that nothing is getting in the way of buyers being able to see how well loved and cared for your home is. Dirty or cluttered homes typically turn buyers off quickly, and the extra time you put into cleaning up will be well worth it.

• Hit the Road. Never remain at home during showings or Open Houses. Your goal is to get buyers to explore your home, perhaps lingering to imagine the possibility of living there themselves. You being there could make them uncomfortable, leading to a shorter visit. For sure, you will be curious, but it’s easy enough to get any feedback from your real estate agent right after the showing.

• Price to Sell. Often the key to how quickly a home sells is directly related to its price. It is extremely important to set a realistic, competitive price that will attract buyer attention. Your real estate agent can provide you with pricing recommendations based on local market conditions and sales of comparable properties.

By Tim McLaughlin, Sr. Vice President, Weichert Financial Services

With part one of the debt ceiling crisis behind us (albeit the story is not finished yet), there has been a lot of economic events over the past couple of weeks that have made the global markets very nervous and volatile…with a freefall in interest rates being the benefactor.

Some of the events:

• With a flair for the dramatic, an accord to come to terms on expanding the US Debt Ceiling and a move towards cutting costs and balancing the budget came with a few hours to spare on Tuesday. However, the story continues: what cuts will be made, and how much will those cuts drag on the economy? Will the US lose its global AAA sovereign debt rating, and what will that mean for Treasury, Mortgage Backed Security, and Corporate borrowing costs?

• The Yen depreciated about 4% against the dollar Thursday morning, sending the Global Equity markets into a further tailspin. The Bank of Japan also announced an additional 10 billion Yen to its Y40 billion Yen asset-purchase program to limit the damage of the country’s rising currency on the export-driven recovery in the wake of the devastating earthquake and nuclear disaster earlier this year.

• The European Central Bank resumed bond purchases and offered banks more cash to stem the spread of the debt crisis and to calm the ongoing woes related to Greece, Ireland, Spain, and Portugal.

• QE3 talk on the horizon – The Fed is rumored to be considering a new round of security purchases to spur the economy if growth and employment keep languishing and inflation recedes

So what is the bi-product of all this shaky economic news? Rates have fallen to the lowest levels of the year, with 30 year mortgages in the low 4% range, 15 years in the mid 3% range, and 5/1 hybrid ARM’s with a 2 handle interest rate. Will these rates be short lived, with the prospect of a US Sovereign Debt downgrade on the horizon? Whether purchasing or refinancing, the time to act has never been better.