October Real Estate Update
One thing you can say it hasn't been boring!!
Rates Back Down
In Freddie Mac's results of its Primary Mortgage Market Survey the 30-year fixed-rate mortgage averaged 4.32 percent for the week ending September 30, 2010 - down from the previous week when it averaged 4.37 percent. Last year at this time, the 30-year fixed-rate mortgage averaged 4.94 percent.
Confidence in the state of the economy fell among consumers and businesses, which led to a decline
Source: Realty Times
U.S. averages as of September 30, 2010:
30 yr. fixed: 4.32%
15 yr. fixed: 3.75%
1 yr. adj: 3.48%
in long-term bond yields and brought many mortgage rates back to record setting lows this week.
What's New in New
Below are the products that are currently grabbing the most attention of the home building and remodeling industries:
Appliance Drawers. Small warming drawers, modest-sized dishwasher drawers for small loads, refrigerator drawers and microwave drawers.
Counter-depth refrigerators. Some are only 24 inches deep.
Motion-detecting faucets. Like you'd find in the restrooms of businesses.
LED lighting. These are used under cabinets and in ceiling fixtures as a longer-lasting, more efficient alternative to compact fluorescent lamps and incandescent bulbs.
Electric heated floors. A nice touch in bathrooms,
Showers with multiple heads and body sprays. Bathtubs are out.
Sellers Quickly Transform Property with Paint
The best way to update a property is to paint it. It's a job that many sellers can do themselves. Here are five suggestions for making the work go quickly.
Get as much furniture as possible out of the way, and cover what's left with plastic drop cloths.
Buy good paint. Top-quality latex interior paint will hide what's underneath.
Tape the edges. Taping the edges with painters tape will speed up the job and make the results more professional.
Paint the ceiling first, then the walls, then the windows and trim and finally the baseboards. This will cut down on time spent repairing drips.
Cut in the corners. Applying a three-inch band of paint around the edges will allow you to fill in the middle with a paint roller.
Four Tips for Setting the Right Sales Price
Sellers think their homes are worth more than their real estate professional recommends, and buyers think these same homes are worth less.
It's a difficult disconnect that makes selling properties a challenge. Successfully marketing a home requires that the price be set carefully -- or it will languish on the market.
Among the considerations:
How many homes are for sale in the neighborhood? The more homes on the market, the more important it is to list at the lower end of the scale. "I want buyers to ask why is this house priced so competitively," said NAR President-elect Ron Phipps. "I want the answer to be an offer."
Take short sales and foreclosures into consideration when pricing. If the competing properties are in lousy condition, they are less of an issue, but if they are well taken care of, yet priced 25 percent below market, they can be a serious factor.
Negotiate decisively. "Buyers are not interested in back-and-forth negotiations these days," Phipps said. "They are less emotional and more disciplined. They will walk away."
Cut the price when you have to. If no one shows up for an open house, if no one calls and if there are no offers, then the price is too high. That means it's time to make a meaningful price cut.