Mortgage Interest Rates Continue Downward (Caution !)

New record lows for long term mortgages have been recorded in the last few weeks with all indications that the mortgage rates will continue a slow decline until it is clear that the current economic conditions in the country start to improve. Its pretty much agreed upon by all of the experts that until the job situation in this country starts to improve drastically, rates will stay as low as they are now, but will start an upward climb when the jobs picture improves.

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Make a Home Look More Expensive

When you are getting ready to sell your home, there are many things that have to be done so the house is in excellent condition when potential buyers come to look at it.

Home staging is very important and whether you do it, or hire a professional to do it, certain things should be done to make the home look and have a feeling of being in fashion and up to date. This brings up the age old problem of having to re-do the home and possibly having to go buy new pieces of furniture, or accessories.

Unfortunately, there is not just one place to find home staging supplies, so being creative is important, not only in what you use, but what you buy, and then how you use it.  You can get some ideas from your close friends.

Here are five ways to make your home’s interior look more expensive, and in fashion, but not at the cost of your bottom line:

1.  Use one expensive piece of furniture, or other item, in each room, well positioned.  It can be a piece of art, a table or something rare and expensive like valued china. The expensive piece(s) should be the focus of attention as soon as someone walks into that room.   This is what they see first. First impressions!

2.  Use white. It has always, and will always be a staple that professional home stagers use. It radiates of light, cleanliness, and open space. Try using inexpensive white pieces on an expensive table or other piece.

3.  Look at what can be recycled. Try recovering a favorite chair or sofa.  Much of the furniture of past years had great design and great lines and sometimes are worth recovering and restoring them back to life.

4.  Rotate your theme colors, and do it in each room if possible. Every new season, the design world changes the “what’s-in” color.  A good way to make your home look in-style, is to have that in-style color. Visit some ‘in’ stores in your area, and see what they are doing with different colors, how they are using them, and which is the most popular.  You will get lots of good ideas.

5.  Don’t buy new furniture or accessories at the beginning of any new season.

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FHA Continues to be Safe Mortgage Lifeline

Federal Housing Administration chief David Stevens has recently announced on a prominent radio talk show, that his agency has doubled the amount of approved loans in the last fiscal year over the previous fiscal year.

He stated that FHA focus will continue to be on owner-occupant borrowers, and its requirement that applications be fully documented. “We don’t do investment properties. We only do 30-year, fully amortizing, fixed-rate mortgages, and every loan is fully documented, so when we approve a borrower, we know their ability to repay that loan has been verified.” 

He failed to discuss talk in the media, of reports that lawmakers having many concerns whether FHA is getting over-extended, or whether the safety measures the agency just rolled out several months ago, are going to work or not work.

Those new measures include:
Requiring borrowers with a credit score of 580 or less, to put up a minimum of 10 percent down, and to pay much higher mortgage insurance premiums.
For those borrowers who have credit scores higher than 580, the down payment remains at 3.5 percent minimum.
  
It’s too soon to tell what impact those new changes are having as of now.

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Home Sales Rose Nationally 7.2 %

According to RE/MAX Monthly Housing Report, because of the U.S. Homebuyer Tax Credit of fall and again this spring, the home sales rose nationally 7.2 % in June over May. Although this volume will not continue, homes sales will remain higher than last year and prices are slightly increase. The median sales prices for June was $211, 530.

“There’s no question, the tax credit has had a significant impact on this market,” says RE/MAX CEO Margaret Kelly. “No one can predict the future, and we may still see a slight pull back, but for right now it appears that housing is holding its own, hopefully on the road to a sustainable recovery.”

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Rent Furniture to Give New Life to your Home for Sale

Selling a vacant home can pose more challenges in today’s market, as the house can feel uninspiring, sometimes cold, doesn’t photograph well, the rooms appear smaller than they are, and you often are competing with furnished homes in your area, and in the same price range.

If your home is vacant or partially vacant, you should consider renting furniture as a partially vacant house is sometime worse than a completely vacant house when trying to sell it.  At least consider it.  Furniture, if properly placed and situated, will bring much warmth to a room. Placing the correct accessories on the furniture will also help bring attention and warmth to the room and can help to showoff the positive aspects of the room and house.

Examples:
Living Room or Den: If you house has a beautiful fireplace, that alone can be the determining factor in selling your home, so the fireplace should stand out for everyone to notice when they view the house. If you have the proper placement of a sofa, or couch, or accent chairs that draw attention to that fireplace, you are pointing out one of the main attractions of the home, and you are doing it without saying a word.

In the Kitchen: Placing a couple of chairs along the wall wont be the same as having a nice table and chairs sitting where they are supposed to be, and having the set accent the nice eating area, especially if a family is looking at the home for a possible purchase. 

It is wise to not have personal photographs, or other personal items sitting out or hung on the walls, including trophies, sports awards, etc.

Renting Furniture and Costs:
You can rent the furniture and at great prices.  The thing to watch is the pricing and if there is a contract that might bind you into something for more time than what you want.  There are several, national “budget” rental companies – before you rent from them, take a look at the product you will be getting. Putting cheap furniture into a home to fill it up doesn’t fool anyone and wont get you anywhere.

Do consider renting furniture, but only if it is needed as I feel it will move the house much faster especially in today’s market. There is typically a minimum rental term. Industry standard is three months. Shorter terms often require a surcharge.

Payment requirements vary. Some companies require the entire rental to be paid upfront, others charge monthly with a security deposit required upfront. Shop around, you can find the right deal for your own particular needs.

A final thought:  One thing I tell my clients is that when they have listed their home for sale, it should be clean, throughout, including the yards and garage areas. The walkways and driveway should be clean and not have oil or stains all over the concrete, or inside the garage area.  At the entry, the porch should be inviting and clean.

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