What Savvy Home-Owners Should Know

 

How To Spend Your Time & Money In a Buyer’s Market

The current combination of low home prices and low mortgage rates make today’s real estate market a “buyer’s market.” If you’re a homeowner interested in selling your home right now or are just keeping the possibility in the back of your mind, a few key home improvements have been shown to have a significant impact on how buyers and agents see your property — and how much they’re willing to offer and pay for it. Maximizing these five qualities of your home helps you take advantage of the buyer’s market by leapfrogging your property to the top of the most desirable list.

Clean and clutter-free — according to HomeGain.com’s Home Sale Maximizer survey, the number one investment sellers can make of both time and money is to clean and de-clutter their homes. Cleaning and organizing your home in advance of putting it on the market costs, on average, under $300 and brings an average price increase of about $1,990 — a return of more than six times the original investment.

Four more ways homeowners can create a stellar first impression and realize a positive impact on the sale price are:

• Light and bright — this can mean anything from new, brighter bulbs to more lamps to a fresh coat of neutral, light-reflecting paint on the walls.
• Staged — create the image of a dream home, with stylish accessories, plants, and occasional pieces. Staging a home lets it tell the story the buyers want to read.
• Landscaped — welcome potential buyers with bright flowers and green grass , don’t scare them away with a dry brown lawn and scraggly plantings.
• Repaired — sounds simple, but making sure every light switch works, every faucet runs and every toilet flushes can mean a $1,500 swing in price.

An article in The New York Times noted that small changes “can alter the ultimate sales price of an apartment by 5 to 10 percent. The calculations are irrational, and buyers are usually unaware they are doing it.” (Emphasis added.) From chipped tiles to fresh paint, from cluttered rooms to crisp, new bedding, little things can mean a lot. The article cites real examples where one apartment, filled with stuff and clutter sold for 15 percent less than an identical one, whose owners had cleaned and streamlined the rooms. Offers on another apartment went up 5 percent ($25,000) after the bathroom was freshened up with $700 worth of towels and a new bath mat.

Phone Home

 

Smartphone Apps for the Savvy Homeowner

Owning your own home means managing a combination of day-to-day details, longer term projects and unexpected repairs. Although your phone can’t fix that leaky faucet for you, it can help you figure out what you need to do the job yourself, or help you find a local plumber to do it for you.

Enter the smartphone  — a homeowner’s new best friend.  Culled from lists from Freshome, The New York Times, and HouseLogic, these smartphone apps aim to make owning and maintaining your home just a little easier:

iHandy Carpenter — a bevy of typical carpenter’s “tools” in one place, including a ruler, protractor, bubble level and plumb bob. (iPhone)

• Landscaper’s Companion — a veritable encyclopedia of more than 1,000 types of flora at your fingertips, complete with photos and water and sun requirements, as well as helpful gardening tips. (iPhone and Android)
• ServiceMagic Home Improvement — free access to 60,000+ contractors and service providers, along with previous customers’ ratings and reviews. (iPhone)
• Good Housekeeping@Home — want to know how to get that peanut butter stain off the rug? Or the coffee stain off your favorite chair? This app not only offers stain solutions and cleaning tips, it also comes with a library of home décor tips. (iPhone)
• ColorSnap —  from Sherwin-Williams, this app matches colors from pictures you snap on your phone with paint colors, offering expanded palettes based on your color choices and detailed color information including names and RGB information (iPhone and BlackBerry)

For more cool apps for homeowners, visit the lists posted on houselogic.com, nytimes.com and freshome.com.

And because homeowners all have shopping lists — check out RedLaser and ShopSavvy, two of the most popular comparison shopping apps, which let you scan a barcode and compare pricing and availability (local and online) on the spot. RedLaser is known for its accuracy and also offers food allergen data on scanned items. ShopSavvy not only provides product price and availability information, but also coupon codes, sales and rebates. Both apps are available for iPhone and Android.

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Weichert Continues to GROW!

FOURTH GENERATION MICHIGAN COMPANY FLIES NEW BANNER AS WEICHERT, REALTORS® - EHMAN & GREENSTREET 

Ypsilanti/ Ann Arbor/Farmington, Mich., April 13, 2011—Clark Brown, broker/owner of Ehman & Greenstreet, has announced the company’s affiliation with Weichert Real Estate Affiliates, Inc. (WREA) as an independently owned and operated franchise.  Signs reading WEICHERT, REALTORS® - Ehman & Greenstreet have been added at 1947 Whittaker Road in Ypsilanti, 500 East Eisenhower Parkway, Suite A in Ann Arbor, and at the newest location, 30095 Northwestern Highway in Farmington.

“This is more than just adding a new brand name to the front of ours,” Brown said of the relationship.  “It’s what’s behind the name that makes all the difference.” Brown, who has been in the real estate business for 33 years, conducted a thorough research of franchise opportunities and determined that “Weichert is way ahead of the game, specifically with their systems,” he said.  “For the next 3-5 years this will be more important than what the sign says.” 

WREA launched its first affiliate in 2002 and by 2005 was identified by Entrepreneur Magazine as one of the nation’s fastest growing franchises.  To date, its reputation continues to grow along with the roster of affiliates, now operating in 36 states. Together with company-owned offices, approximately 18,000 agents serve key U.S. markets.   The parent company, Weichert, Realtors®, is one of the nation’s largest privately owned providers of real estate and home ownership services.

The company is literally “run by Realtors.” From founder Jim Weichert to WREA President Martin J. Rueter and his staff, the team consists of people who have been in the field as Realtors, Brokers, office owners, managers and sales people.  In fact, Rueter traveled from to Michigan from Weichert® headquarters in Morris Plains, New Jersey, to make an in-person introduction of the company to Brown’s staff and sales team.  “We couldn’t be more proud than to add Clark and his outstanding family to ours,” Rueter said.

Ehman & Greenstreet has been in business since 1922.  The company was founded by Brown’s great grandfather, making him a fourth generation broker, “and some members of the fifth generation are working with me now,” he said.  Also like his father and grandfather, Brown is a past president of the Ann Arbor Area Board of REALTORS®.  The company is currently home to more than 40 agents.  Brown can be reached for comment at the main office in Ypsilanti, telephone 734-482-3484.

Mortgage Market in Review

Market Comment
Mortgage bond prices fell last week pushing mortgage interest rates higher.  Stocks continued to show strength throughout the week.  The DOW rose over 100 points, which didn’t help mortgage bonds.  There was some talk of Japan selling US debt to raise cash.  That chatter along with more hawkish remarks from the Fed regarding rates pressured bonds.  The employment report released Friday was better than expected adding to the losses seen earlier in the week. Mortgage bonds ended the week worse by about 3/8 of a discount point.

Credit DemandInflation is typically the most important focus for the mortgage interest rate market.  Inflation remains a concern as the Federal Government continues to print and spend money in an effort to spur the economy.  Unfortunately, mortgage interest rates also continue to be pushed around by gyrating stocks and weak demand as performance uncertainty looms.  Most of the recent increases in interest rates have come following stronger stocks.  As stocks struggle we often see rates improve.  In addition, mortgage bonds have benefited from global economic uncertainty as investors search for safe havens amid sovereign debt defaults in Greece.  This flight to quality buying of mortgage bonds has pushed prices higher and mortgage interest rates lower.

The level of interest rates reflects the balance between the supply of money from investors and the demand for money by borrowers.  Rising inflationary expectations and uncertainty about the performance of the debt cause investors to require higher rates of return on investments to compensate for the erosion of the principal that eventually is returned to them or the risk of non-performance.  Regardless of inflation levels, though, rising economic activity can increase the demand for investors’ funds, and thereby lead to higher interest rates.  Investors pulling money out of bonds and into stocks could pressure mortgage rates.

The demand for money diminishes as the economy struggles.  The Fed lowers interest rates as an incentive to businesses and consumers to increase their borrowings.  The Fed hopes manufacturers will increase their investments in plants, equipment and inventories and that consumers will push housing construction along with consumer spending and with that, consumer debt.

Analysts will monitor this week’s consumer credit levels.  There is much debate in the financial community about the future.  Economists, market analysts, and traders all seem to have a different opinion about the future state of the economy and especially whether or not we have hit the bottom of the economic slide.  One thing most market participants agree on is both the bond and stock markets are going to see additional volatility.  Now is a great time to take advantage of rates at the still historically favorable levels.

 

Copyright 2011. All Rights Reserved. Mortgage Market Information Services, Inc. www.ratelink.com The information contained herein is believed to be accurate, however no representation or warranties are written or implied.
Information courtesy of:

Kimberly Smrek Mortgage/203K Renovation Consultant - NMLS#141170

Office: 301-562-9540, x108 Send me an email     |   Visit my website

Weekend Rate Update

These rates are valid for purchase loans locked in by 10:00 AM Monday.  These rates are examples only, final rate determined by credit score, property type, owner occupancy and downpayment.

• FHA/VA 30 Year Fixed:   4.75 % +0 !!!
• FHA/VA 30 Year Fixed High Balance:  4.875% + 0!!!
• FHA/VA 5/1 ARM:   3. 75% + 0, Caps of 1% per year and 5% over the lifetime !!!
• Conforming 30 Year Fixed:    4.75% + 1  or  5. 00% + 0   
• Conforming 30 Year Fixed- 95% LTV - NO PMI:    5. 375% + 0
• Conforming  20 Year Fixed:    4.75% + 0
• Conforming 15 Year Fixed:   4.375% + 0
• Jumbo 30 Year Fixed:   5.50% + 0
• Jumbo 10/1 ARM:  5.00% + 0

If you have a buyer in need of pre-qualification or mortgage information, please call Jeff Harris at 410-218-0366.   

Wells Fargo Home Mortgage is a division of Wells Fargo Bank, N.A. All rights reserved. Equal Housing Lender. Wells Fargo Home Mortgage-2701 Wells Fargo Way-Minneapolis, MN 55467-8000

 

Appraisal News & Updates

Four states – Illinois, Maryland, Missouri and Nevada – are considering legislation that would prohibit or restrict the use of “distressed sales,” such as foreclosures and short sales, as comparable sales as a part of a residential real estate appraisal.
Homebuilders and real estate sales agents are concerned that the prevalence of distressed sales, and their subsequent use as comparables, is resulting in the appraised value of residential properties not matching the contract sales price, or in the case of new construction, the cost to build.

• The Missouri legislation, known as House Bill 292, would prohibit appraisers from using a property that has been sold at a foreclosure sale as a comparable. Similar to the Missouri proposal, the Illinois legislation would prohibit appraisers for the next five years from using as a comparable sale “a residential property that was sold at a judicial sale at any time within 12 months.”
• The Nevada legislation would prohibit the use of foreclosures and short sales. The prohibitions contained in the Maryland legislation are somewhat broader and include any property that was sold under “duress or unusual circumstances, such as a foreclosure or short sale.”
• There is, however, conflicting language in the Maryland legislation that appears to allow for the use of distressed properties as comparables if the appraiser takes into account factors such as the motivation of the seller, the condition of the property and the property’s history or disposition before the sale. Appraisers in Maryland will oppose this legislation during a hearing March 29.
• If these bills were enacted into law, appraisers would be put in the difficult position of having to choose which law to violate. Appraisers are required to adhere to comply with the Uniform Standards of Professional Appraisal Practice in federally related transactions. The standard mandates that appraisers “must analyze such comparables sales as are available.” Further, the standard cannot be voided by a state or local government.

Not following USPAP could subject the appraiser to having action taken against their license. Therefore, appraisers would have to make the decision to commit a USPAP violation – which in the case of federally related transactions would be a violation of state law – or to violate the law prohibiting the consideration of distressed sales as comparables.

• To read the Illinois legislation, go to http://www.ilga.gov/legislation/97/HB/09700HB0092.htm .
• To view the Missouri proposal, go to ttp://www.house.mo.gov/billtracking/bills111/biltxt/intro/HB0292I.htm .
• To see the Maryland legislation, go to http://mlis.state.md.us/2011rs/bills/hb/hb1309f.pdf .
• To see the Nevada proposal, go to http://www.leg.state.nv.us/Session/76th2011/BDR/BDR76_54-0532.pdf .

Additional resources:
appraisal services,
appraisal management company,
coester appraisal,
fha minimum property standards,
best appraisal management company,
reverse mortgage appraisal companies

Info courtesy of Michael J. Schneck, Vice President / Area Manager 1st Mariner Mortgage: Divsion of 1st Mariner Bank. 410-777-1010