Monthly Archives: October 2013

Housing Analysis

What’s Ahead For Mortgage Rates This Week – October 7, 2013

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What's Ahead For Mortgage Rates This Week- October 7, 2013This week’s economic news commentary has been dominated by the “what ifs” of a government shutdown; opinions of potential consequences are limited only by the number of commentators sharing their opinions.

Unfortunately, more concrete examples of the shutdown were evident last Tuesday and Friday.

The Department of Commerce delayed release of August’s Construction Spending report that were due last Tuesday and The Bureau of Labor Statistics delayed the release of September’s Non-farm Payroll and Unemployment that were due last Friday.

The ADP Employment report for September posted a reading of 166,000 private sector jobs added against expectations of 180,000 new jobs added. September jobs added surpassed August’s reading of 159,000 new jobs added in the private sector.

Mortgage Rates Remain Near Record Lows

Freddie Mac’s Primary Mortgage Market Survey released Thursday brought a third consecutive week of falling mortgage rates. 30-year fixed rate mortgages had an average rate of 4.22 percent down from 4.32 percent the previous week.

The average rate for a 15-year fixed rate mortgage fell by eight basis points from 3.37 percent to 3.29 percent and the average rate for a 5/1 adjustable rate mortgage fell to 3.03 percent from 3.07 percent.

Discount points were unchanged from last week at 0.70 percent for both 30-year and 15-year fixed rate mortgages and rose from 0.50 percent to 0.60 percent for 5/1 adjustable rate mortgage loans.

Weekly Jobless Claims were lower than projected. The reading of 308,000 new jobless claims was better than the 313,000 new jobs expected, but was higher than the prior week’s 307,000 new jobless claims.

What‘s Coming Up Next

This week’s scheduled economic reporting is also subject to adjustment if the federal government’s budget is not resolved. The most recent FOMC meeting minutes are due on Wednesday; if released they are expected to provide details about the Fed’s decision not to change its current quantitative easing program.

Weekly jobless claims and Freddie Mac’s PMMS survey of average mortgage rates are due Thursday. The University of Michigan Consumer Sentiment Index for October is set for release on Friday. 

Home Buyer Tips

City Lights Or Starlit Nights, Which Home Location Will You Choose?

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City Lights Or Starlit Nights, What Home Location Will You Choose?If you are looking to buy a home, you might be wondering whether you should be looking for properties that are right in the center of the city or whether a better option would be to buy a property on the outskirts or in a rural area a short drive away.

The rural or urban decision will ultimately be up to you, as there are advantages and disadvantages to either option. The main difference will lie in your priorities – what type of lifestyle is most important to you?

Living In The City

One of the main perks of buying a property that is located in the heart of the city is that you will be able to enjoy convenient public transportation and you won’t have to use a car to get everywhere.

You are likely to have a shopping center and a supermarket within walking distance of your home, as well as other important amenities such as a doctor’s office, a pharmacy, a post office and more.

Also, if you enjoy attending concerts, visiting art galleries or enjoying other artistic events, you will find much more of these concentrated in the city center. You will also enjoy more options when it comes to shopping.

Of course, living in the city center means that property prices are usually a lot higher and you will likely end up with a lot less space for your money. Your kids might not have as much room to run around (unless you find a home near an urban park or a playground). Also, the hectic pace of the city, with all the traffic and high rise buildings, can be stressful for some.

Living Outside Of The City

When you buy a home just a few miles outside of the city, you will find yourself experiencing a completely different lifestyle. You will be a lot closer to nature, with plenty of walking trails and wild areas right outside your back door. The air will be cleaner and you will be able to see the stars better at night time.

Many people feel safer letting their children play outside in the countryside and the cost of housing is usually lower than in the high density downtown core. Some people also prefer the peace and quiet of the city and would much rather go for a walk in the woods or have a campfire than attend a cultural event – so the country is the right place for them.

Of course, the disadvantages of rural life is that it can be inconvenient and time consuming to drive into town to get supplies to meet up with friends. You must own a car in order to get around, as the public transport system will not be as good as it is in the inner city.

These are just a few factors to consider when determining whether you would choose the city life or the country life.

For more information on buying a home, whether in the heart of the city or on the outskirts, contact your trusted real estate professional.

Home Selling Tips

Tips On Passing Your Home Inspection With Flying Colors

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Tips On Passing Your Home Inspection With Flying ColorsHome inspections are a tense time for everyone. Sellers are fervently hoping that nothing major is wrong with their home that could hold up the transaction.

Buyers are eager to hear that their new house is in prime condition. Whatever the wishes, one thing is for sure; any news from an inspector is usually bad news.

Home inspectors have a tough job. They have to be trained to spot hundreds of potential issues with a home and be knowledgeable of local codes, community restrictions and residential permit parameters.

Stay one step ahead of your home inspector by reading the list of common home inspection issues below. Then hopefully your inspection won’t reveal any unwelcome surprises.

Electrical Wiring

This is a common bubble-busting issue, especially in older homes. Wiring might have been up to code when the home was built, but it now violates code and is a fire hazard.

Look for ungrounded outlets, shoddy wiring or a mass of confusing connections in the electrical panel. Replacing an entire electrical system can be expensive, but it’s worth it not to risk a fire.

Plumbing

Look for signs of water damage in the ceilings. This could be a sign that something above, like a bathtub or sink is leaking into the floor or walls. Look around toilets and inside kitchen cabinets for traces of wet flooring or wood.

While external leaks are easy enough to fix, interior pipes might require you to rip up flooring.

Foundation And Framing

Examine the foundation and framing of your home for any structural issues. You’ll want to keep an eye out for cracking in the foundation due to water runoff or settling. Also, look for signs of wood rot or termite damage.

These issues affect the framing of your home and could cause scary structural problems if left unattended.

Roofing

While it’s probably too difficult for you to inspect the roof yourself, just stand back in the yard and see if you can notice any bare spots. Also, check for water damage around the roofline from rain leaking in. Don’t get too discouraged about roof issues. It might not call for a complete replacement, but just a repair on one section.

These common home inspection issues affect both sellers and buyers. As a buyer, you’ll want to keep a eye out for these problems so that you know what you’d be getting for your hard-earned money.

As a seller, it’s good to stay one step ahead of the home inspector so that whatever price is agreed upon goes through.

Around The Home

Do Fence Me In, Here Are A Few Good Yard Fencing Options

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Do Fence Me In… Your Yard Fencing OptionsWhether you just got a puppy, have newly mobile children or built a pool, there are a multitude of reasons for wanting to keep people and animals in your yard, while preventing other from entering.

Picking the perfect fence can be difficult, so below we’ve outlined the main fencing materials to choose from and characteristics to consider about each.

Wood

Wood seems to be the most common material used in yards across the country — especially when wanting privacy. Depending on the type of wood you purchase, you’ll probably want to stain the planks to protect them from rot and ultra-violet light. Be prepared to retreat and maintain your wooden fence about every four years.

Chain Link

This economical option does its job well as a security fence. It’ll keep pets in and people out. And with the new black or green plastic coating chain link comes in, it almost blends into any background.

Chain link fences shouldn’t require any maintenance for at least 10 years, and they usually come with warranties for at least that long.

Wrought Iron

If you’re in the market for an ornate fence that you can see through and provides high security, then wrought iron should be your pick. These fences are actually made from steel and aluminum and need virtually no upkeep. Don’t expect to see any issues for at least 20 years.

Vinyl

You like the look of wood, but you hate the upkeep. Well, if you’re willing to spend the extra dough, usually four to five times the cost of wood, then you can have a man-made product that looks like the real thing.

Faux-wood fencing is usually seen in white, but can come in a variety of colors and even look almost identical to actual wooden planks. The best part is — no maintenance required!

Whatever your reason for building a fence, such as privacy, security, safety or to add curb appeal, you’ll have hundreds of options to choose amongst. Be sure you carefully consider each of the main fencing materials above, along with their look and maintenance requirements before you make the investment.

Home Selling Tips

Which Additions Really Add Value To Your Home?

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Do Those Additions Really Add Value To Your Home?When you own a home, there are additions that you can make to the property that will improve the value of your home. For example, a newly renovated kitchen or bathroom is a popular choice that will really make the home more desirable to buyers.

Also, adding storage space or a well-thought-out family room or other practical space can be a very good investment that will bring up the home’s value.

However, there are other projects that are not really worth your time or money and will allow very little opportunity to recover your costs when it is time to sell the property. Here are a few examples of things that you think might add to the value of your home, but really don’t.

An Elaborately Landscaped Garden

A beautifully landscaped garden might make the home more visually attractive to buyers when they are looking at the property, but it will not likely add to the selling price.

This is especially true if the new buyer is not interested in putting in the effort to keep the garden well-maintained and sees it as a burden. If they don’t have time to do the landscaping, they will need to hire a gardener which will add to their expenses.

A Hobby Specific Room

Are you tempted to convert a bedroom into a room that is specific to one of your particular interests, such as an art studio, a library or a wine cellar? This will not add a lot of value to the home, because the next buyer is not likely to share your passions.

It might even make the home less than desirable, because the next owner will not want to spend the time and money renovating the room back into a bedroom.

You can create a hobby room; just make sure that you make non-permanent chances to the room so that you can quickly and easily switch it back to a bedroom.

A Renovated Garage

Redoing your garage and turning it into a family room or a play room might give you a short term benefit, but you might regret it when you go to sell the home. Most people want a garage to serve its original purpose – as a place to protect their cars from the elements and store their shovels, garbage cans, leaf blowers and other outdoor things.

These are a few examples of home additions that will not add to the resale value of your property. To find out more about selling your home, contact your real estate professional. 

Around The Home

How To Manage Those Fallen Leaves

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How To Manage Those Fallen LeavesThe kids are back in school, the weather is getting cooler and your yard is covered in a layer of fallen leaves. Yep, it’s that time of the year again, but don’t think of fall leaves as a chore. They can be a useful resource for fertilizing your lawn or even decorating your home for autumn.

Finish The Raking

It’s tempting to just let the leaves lie in the yard. It’s good fertilizer anyway, right? Wrong. You should rake everything up as soon as the trees begin to look bare, or else risk the blanket of leaves smothering your lawn over the winter season. Gather them up in plastic bags and put them to use.

Refuse To Rake Leaves

If you can’t bring yourself to pick up a rake, you do have an alternative. Wait until the leaves are dry and crunchy and fire up the lawnmower once more before winter. Many mowers have a mulch setting that will chop the fallen leaves to bits.

The smaller pieces won’t suffocate your lawn, and the crushed leaves make a good fertilizer. If you’d rather use the leaf bits in the garden or a flowerbed, use a grass clipping catcher with your mower to gather up the pieces as you mow.

Use Mulch And Fertilizer

Fresh chopped leaves are a good homemade mulch. Put a layer on the garden and the flower bed to replenish the soil over winter. Also, be sure to put a thick layer around young trees and shrubs to keep them warm. If you really want to get the most out of your leaves, then take them to the compost pile.

Mix the leaves in with the regular green yard waste, and the leaves will boost the composting process into overdrive. The fully composted material makes a potent fertilizer.

Get Crafty

Set some leaves aside to take indoors. The changing colors of the fall leaves are part of the beauty of autumn. Why not bring some of that beauty into the house?

Fill a vase with leaves for a seasonal centerpiece, or use a wire frame to make a wreath for the front door. You can make leaf etchings with the kids or simply use one as a bookmark.

It’s sad to see so many fall leaves burned up in piles, or put out with the trash. The leaves on the lawn aren’t just a mess to be cleaned up. Inside or outdoors, autumn leaves are an easy, natural, and free material. Be sure to put them to use!

Around The Home

3 Easy Tips To Protect Your Deck This Winter

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3 Easy Tips To Protect Your Deck This WinterBarbecue season is all but over, and you won’t be spending as much time out on the deck. Don’t let it get you down, though. Spring will be here before you know it. There are a lot of things that can wear down and damage your deck, so protect your deck and make sure it stays in tip top shape over the winter.

Cover The Furniture

You want your deck to look as good in the spring as it does now. The first step is to cover all the furniture (don’t forget the grill!). Cover everything with commercial furniture covers or just use a tarp. Be sure that the covers fit snuggly.

They won’t do any good if they’re blowing through the neighbor’s yard. If you’ve got the space, make room in the garage for the deck chairs and table. They’ll last longer if you store them indoors for the winter.

Give It One More Good Cleaning

Dirt and dust can get trapped in the wood over the course of the summer, not to mention dog slobber or barbecue sauce. If you let these things stain your deck all winter, it will be a pain in your neck to get them out in the spring. Make sure to give your deck a thorough cleaning before it gets too cold.

You can use a pressure washer to spray away all the dirt. However, be careful not to splinter your wood, as pressure washers are powerful. Another option is to scrub the deck down with a brush. 

There are severally commercial cleaners to choose from, but don’t get one with bleach. You don’t want your wood to fade. If this sounds like too much work consider hiring someone to give your deck a professional cleaning.

Moisture Is The Enemy

Rain, sleet, and snow will seep into the cracks of your deck all winter. They can cause discolor, warping, and even cracking. Now is the perfect time to use a waterproof finish to seal all the little cracks in your deck and keep out the moisture all winter. There are a wide variety of finishes to choose from. Choose a darker or lighter finish to give your deck a new look.

We’re leaving behind the days of barbecues and swimming pools, and replacing them with wool socks and fireplaces. Over the winter you can’t give your deck as much attention, but you can make sure it stays healthy and strong until spring. A good deep cleaning and a fresh new finish are your keys to avoiding cracking, warping, fading, and mold. Put in the time now, and you’ll extend your deck’s life by years.

Home Seller Tips

4 Staging Tips For Your Vacant Land For Sale

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4 Staging Tips For Your Vacant Land For SaleIn some ways, selling vacant land is no different from selling a home. You still have to prepare it for sale, and you still need to make it look as good as possible. This process of cleaning and beautifying is called staging. Here are a few tips for staging your land.

  1. De-Clutter. Your buyer wants to actually see your vacant land, and clutter only blocks their vision. Remove fallen tree branches, trash, and junk like car parts and damaged buildings. Cut back large brush. Clear paths so potential buyers can easily walk around the property.
  2. Highlight the positive features. Do you have a section where birds like to feed? Keep it stocked with bird feeders. Is there a section filled with colorful wildflowers? Don’t cut down this section when you mow. Does a group of trees form a canopy? Place a picnic table under their shade. Point out these positive features to your buyers.
  3. Make minor improvements. Repair any damaged section of fence around your property. Dig a pond and use the dirt to fill low areas so they are level with the rest of your land. Keep the grass mowed. These small efforts can make the difference between whether or not a buyer chooses your property.
  4. Mark property boundaries. When you’re looking at vacant land, it’s difficult to see the difference between 5, 10, or more acres. At the very least, you should place stakes (like those used by a surveyor) to show where the property begins and ends. Your buyers will want to know exactly what they are purchasing.

Make sure your vacant land is ready to sell. Let me help you sell your property fast and for top dollar. Call your trusted real estate professional today.

Around The Home

How To Interview An Architect When Building A New Home

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How To Interview An Architect When Building A New HomeMaking the decision to build a home might be one of the biggest you make in your life. You’ve found the perfect plot of land and have a vision of what type of home you want, but you need someone to bring your dream to life.

That means it’s time to start interviewing architects.

Hiring an architect isn’t as simple as just calling up a few and seeing who might have the time.

You’ll want to ensure you choose a professional that understands your design aesthetic, communicates well, can design on budget and has an upstanding reputation.

Below are a few key questions to ask when deciding whom to hire.

Do You Have A Specific Design Style?

When interviewing architects, be sure to ask each one if they have a specific aesthetic and if you can see a portfolio of his or her work. While most are adaptable, they usually all have design themes that recur in their projects.

Whether you want a minimalist structure or LEED certified construction, you’ll want to know they have the experience.

What Is Your Fee?

You’ll need to inquire whether they charge a flat fee for their designs or a percentage of the total building cost. Most architects charge a percentage of the overall cost of your home, usually ranging from 5-20 percent.

This is important to know because it means that for every floorboard installed, you’ll need to add on the architect’s additional percentage.

Do You Provide Project Management Services?

There are many services that architects should include within their contract, such as checking the contractor’s work, making adjustments as the construction moves forward and obtaining lien waivers.

Get a list of what each architect you interview includes in his or her fee. Additional charges can add up and might play a part in who you choose.

Interviewing architects and finding the right professional can make all the difference when it comes to building exactly what you want. One you work well with can make the construction experience extremely pleasant, while a negative relationship can leave you hating your new home.

So do your research and be sure to get references.

Home Buyer Tips

Nail The Final Walkthrough Before Closing

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Nail The Final Walkthrough Before ClosingBy the time you get to the final walkthrough on your property, the home buying process is almost complete. However, it is still important to pay close attention to this final step, as it will be crucial in the success of your home purchase.

The final walkthrough is your last opportunity to ensure that everything in the home is in working order and that there are no potential problems waiting for you when you take over ownership of the property.

While conducting a final walkthrough of the property, give yourself enough time to look carefully at everything and not be rushed. You are looking for any new issues that might have arisen since the last time you viewed the home.

Once you close on the purchase the previous owners will not be obligated for fixing any damage. For this reason, you should schedule your walkthrough approximately 24 hours before closing on a home.

What You Should Look For?

When you are performing your walkthrough, here are some of the important issues that you should be watching out for:

  • Are all major appliances in working condition? Do they all have their warranties and owner’s manuals?
  • Do all of the light switches and outlets work?
  • Have any of the fixtures or appliances gone missing, even though the seller agreed to leave them behind?
  • If you have agreed on any repairs, has the seller had these repairs completed?
  • Are there any signs of damage (i.e. scratched walls or floors) as a result of the previous owner moving out?
  • Do all of the water faucets and toilets function as they should?
  • Check the exterior of the house, especially if there has been a storm or strong winds since your last visit.
  • Did the previous owner leave any garbage, extra furniture or unwanted items behind?

What To Do If You Spot A Problem?

If you find a problem when you are going through your walkthrough, there are a few options of what you can do. If the issue is very serious, you might choose to walk away from the deal completely. However, if the issue is not that significant you might decide that it is not worth losing your dream home over.

You could simply pay for the repair yourself, or postpone the closing until the seller fixes the problem. If the repair was agreed upon during the negotiations, you have a legal recourse.

To find out more about buying property, feel free to contact your trusted real estate professional.