I have been in contact with several buyers over the last few weeks that have complained to me that they can’t find a house worth buying. After visiting with both couples I quickly realized that they are bargain hunting in very specific areas of town that don’t have a lot of bargains! One of the biggest misconceptions in real estate is that what you hear on the news, even local news, is how it is in every neighborhood and that is just not how real estate works; it’s neighborhood by neighborhood.
You can have a neighborhood that is loosing its value right next to one that is actually gaining in value. If you are not aware of that fact, you may thing you can waltz into the rising neighborhood and purchase a house at a bargain as if you were shopping in the adjacent neighborhood and you won’t find a house that’s worth buying at the price you are willing to pay because they aren’t there.
Believe it or not, there are neighborhoods just like that in and around the Nashville, TN area including Hendersonville, Goodlettsville and Franklin. If you are out there trying to figure it our on your own; good luck. If you are smart, you will engage a Realtor who can help you find the gems or level with you that you are looking for them in the wrong places!
Open houses are a very important part of the selling process. A great house can languish on the market if it is not prepared properly for each open house. I have come up with some suggestions for preparing your home for an open house.
- Clean/De-Clutter.
- Open shades and window blinds.
- Turn on all lights.
- Turn TV to classical music station.
- Turn down answering machine.
- Leave the house; take pets with you or put them in a crate in the garage.
- Put out fresh flowers on dining room table.
- Bake cookies just before you leave the house.
- Put out small bottles of water with a note to invite visitors to help themselves. (You could also leave them some cookies.)
Follow these simple steps, and you’ll provide a warm, inviting atmosphere for your potential buyers.
Recently the head of the Federal Housing Administration went before congress with some recommended changes for qualifications to get a FHA loan as well as some guideline changes. While nothing will happen until congress votes on these changes, it is believed across the industry that some, if not all, of these changes will happen in some form or fashion. Since we cannot do anything but abide by the new changes, most people just want to know how it might affect them.
For sellers, it looks like the amount you can contribute will be reduced from 6% down to 3%. This means that buyers will have to cover more of their down payment and closing costs in the future and won’t be able to rely totally on seller concessions. It also looks like buyers might have to have up to 5% to put down on the home, which is 1.5% higher than is currently required. There are also some changes in the mortgage insurance and that will most likely raise MI both on the front end and monthly but I have been told that the monthly will be reasonable; we will see.
There are some other provisions that will affect the lenders as well so it will be very important going forward to have a lender that is FHA approved under the new guidelines. As always, if you need some additional information, please give me a call and I would be more than happy to answer any questions you might have or send you to someone who can. In the mean time, we will all have to wait and see what the final results on FHA will be.
While most people will be shopping for Christmas over the next month and a half there are some that will be concentrating on selling their homes over the holidays. If you are one of those families you will want to make sure that you continue to keep your home picked up and clean just like you would anytime you would sell a home as well as making a few additional adjustments.
One of those adjustments is to tone down the holiday décor. Have fun and make it yours, just don’t get carried away and keep it tasteful and clean. Another thing you can do is make sure you have some wonderful natural decorations like evergreen wreaths. You can also keep those wonderful smelling candles out and about as well have some good smelling cookies or baked holiday items that make those buyers want to call your home theirs. The great news for you is that people who are actively looking to buy a home around the holidays are normally very serious about purchasing a home so you have a good chance to sell your home this time of year.
Think about that when the phone rings and you have to vacate your home for a showing. It might be hard to do during the holidays but it will be well worth the effort if you follow these few tips.
With all the financial news and goings on, it is good to know that interest rates for mortgages are still good right now. They seem to go up a little and then down a little and stay somewhere between the high 4’s to low 5’s. That’s not to say that rates won’t go higher or lower since no one is ever able to predict exactly what will happen. All we have are the trends so that’s all we can look at to see if rates are staying relatively healthy for buyers. Today’s interest rate trends definitely are good for buyers. However, there are some other things to consider in today’s market.
The cost of the loan is something that you will need to consider as well as the overall housing market in your area. Working with a good mortgage loan officer and a real estate professional should help you make good decisions, if you are in a place to purchase a home. Even though rates are low, you will need to have at least 3.5% to put down on the home as well as up to 3% closing costs money if the seller is not able to negotiate paying some closing costs. Be prepared and you will come out ahead of the game!
