Tag: real estate agent

  • 7 Tips for Remodeling a Bathroom

    Average bathroom remodels can be pretty up there in price, but here’s some simple tips to help get you a budget-friendly bathroom remodel with the maximum value for your investment.

    1.) Planning is important.
    DO NOT improvise. Think beforehand about how you want to use the space available, what materials you want to use, and just how much you’re willing to spend. This is no area to just start the renovation with no idea in place. And once you’ve made the plan, stick to it. Making last minute changes and alterations adds cost, and many contractors charge more for changing original plans.

    2.) Keep the same floor plan.
    Keeping the same amount of square-footage saves you time and money, and cuts down on demolition. Make the most of the space that you already have. Glass doors on showers and tubs open up spaces. A pedestal sink takes up less space than a vanity. Maybe use a medicine cabinet for storage instead of just a mirror.

    3.) Make lighting a priority.
    The lighting in a bathroom space  will make the overall space look better. Use two ceiling or soffit-mounted fixtures with 60/75 watts each, and side fixtures or sconces with 150 watts each. Four bulb lighting fixtures also work well for side lighting.

    4.) Air Ventilation.
    This is important as it reduces mirror fogging, slippery bathroom floors, and mold and mildew growth. And it also improves the air quality of your home. Excess humidity can cause cabinet damage, and mold is often very expensive to remove. A bathroom vent and water closet fan should exhaust the air outside, not just to the space between ceiling joists.

    5.) Additional Storage.
    Finding areas for additional bathroom storage is tricky. Add storage vertically by installing shelves over towel racks, or multi-tiered shelf units designed to fit over toilet tanks to take advantage of unused wall space. You can add moveable storage by adding baskets or a floor-standing coat rack for towel storage. Add slide-out trays to vanity cabinets.

    6.) DIY Labor.
    Take off some cost by doing some projects yourself. Maybe install a window, add baseboard trim, paint the walls, install a toilet, or add a towel bar or shelves.

    7.) Use a soft color scheme.
    Use neutral colors for permanent fixtures and surfaces. But add color in small items and areas that can be easily changed. Use colorful towels or bath rugs or add a pop of color to the walls.

  • Low Inventory May Drive Prices Up

    For the first time in 16 months, inventory of homes available for sale dropped last month, according to the National Association of REALTORS®. Although the decline was slight, less than 1 percent, per month, the drop does indicate “a reversal to the general growth of listings that had been occurring throughout 2014,” writes Lawrence Yun, NAR’s chief economist, at the Economists’ Outlook blog. “More inventories are needed, not less. Or else, home prices could re-accelerate.”

    In the month of December, the supply of existing-homes on the market was 4.4 months; 6 months is considered healthy by most economists’ standards.

    By the end of December, 1.85 million homes were listed for sale, that’s an 11 percent decline from November and 0.5 percent drop from year ago levels, according to NAR housing data. A drop in inventory is common from November to December, but Yun notes “what is of interest is the year-over-year decline in inventory because this hints at possible acceleration in home prices in upcoming months.”

    Home prices may have already begun “re-accelerating” in some markets, Yun writes. In spring and summer last year, the median price was rising at 4 to 5 percent. In November and December, the prices rose by 6 percent.

    Source: National Association of REALTORS® Economists’ Outlook Blog (Jan. 26, 2015)

  • 5 Mortgage Tips for Home Buyers

    Here are some tips from Bankrate.com on securing a mortgage, getting the best rate, and more.

    1. Be prepared to document your finances.
    Buyers need to prepare for extra review by lenders when underwriting mortgages due to new mortgage regulations that took place in January, particularly in proving the buyer’s ability to repay their loans. Buyers need to have ready their bank statements, tax returns, W-2’s, investment accounts, and documentation of any other assets they may own. They should also be prepared to explain any large deposits in their accounts, regardless of where it came from. If you can’t explain where any large deposits came from, it may delay closing.

    2. Lock in rate soon.
    Mortgage rates are expected to rise during 2014, as the Federal Reserve is winding down its $85 billion per-month bond stimulus program. A rate lock is usually good for 30, 45, or 60 days, although the time period may vary among different lenders.

    3. Shop around.
    Lenders have lost a large amount of their refinance business this year, as rising rates have made homeowners less likely to refinance. Therefore, new homeowners have a good opportunity. Lenders will be more willing to turn their attention to new home buyers and may be more willing to compete for their business. Home buyers need to shop around for the best interest rate on the loan, looking at points and closing costs also.

    4. Pay attention to credit.
    The best mortgage rates often go to people with credit scores of 720 or higher. While people with scores of 680 can likely still qualify for a loan, they might end up paying higher rates or closing costs.

    5. Watch your spending.
    Buyers need to make sure they’re not tempted to outfit their new home with all-new items on credit before closing on the home loan. Lenders will scrutinize debt obligations, like credit cards and student loans. Borrows should keep their monthly debt obligations, including mortgages and property taxes, to below 43% of their income.

  • 5 Most Affordable Housing Markets

    According to the National Association of Home Builders/Wells Fargo Housing Opportunity Index, nearly 65% of new and existing homes sold between the beginning of October and the end of December, were affordable to families earning an average income of $64,400. This is largely unchanged from the third quarter index.

    The NAHB/Wells Fargo Housing Opportunity Index shows that Youngstown-Warren Boardman, Ohio-PA, is the most affordable major housing market in the country. 89.4% of all new and existing homes sold in the fourth quarter of 2013 were affordable to families earning an average of $53,900.

    These are the top five most affordable major housing markets:

    1. Youngstown-Barren Boardman, Ohio-PA.

    2. Harrisburg-Carlisle, PA.

    3. Syracuse, NY.

    4. Buffalo-Niagara Falls, PA.

    5. Scranton-Wilkes-Barre, PA.

    The most affordable smaller market was Kokomo, Ind. 96.3% of homes sold in the fourth quarter of 2013 were affordable to people earning $60, 100.

    The index also showed that the most expensive major housing market in the country continues to be, for the fifth consecutive quarter in a row, the San Francisco-San Mateo-Redwood City, CA area. Only 14% of homes sold in the fourth quarter of 2013 were affordable to the area’s average income of $101,200.

    The National Association of Realtors also released its Housing Affordability Index, which shows that rises home prices are starting to hamper affordability throughout certain parts of the country, specifically in the West.

    While the vast majority of home owners have had significant gains in equity over the past two years, which is helping the economy, home prices are rising faster than incomes, and mortgage interest rates are rising. This is starting to affect housing affordability.

  • Average Home Size Growing

    An average new home size now has increased 300 square feet since 2009. It has increased from an average of 2,362 square feet in 2009, to 2,679 square feet in 2013.

    With this additional square footage, there are more homes adding more bedrooms, bathrooms, and amenities than there were in 2009.

    48% of homes built in 2013 had four bedrooms, whereas there were only 34% of homes with four bedrooms built in 2009. 35% of homes built in 2013 had three or more bathrooms, there were only 23% in 2010.

    Additionally, homes are now accommodating more space in the garage. 22% of homes in 2013 had space to fit three cars or more, compared to only 16% in 2010.

    Builders say that amenities that are most likely to be included in new homes are: a walk-in closet in the master bedroom, low-e windows, a laundry room, and a great room. Some other amenities that are favored by many builders are things like: granite counter tops, double sinks, a central island in the kitchen, 9 foot or higher ceilings, a front porch, exterior lighting, and a patio.

    Bigger homes though, also mean higher prices. Average sales prices have increased from $248,000 in 2009, to $318,000 in 2013.

    Some other features at the bottom of the list that builders will include in new homes during 2014 are: laminate kitchen counter tops, an outdoor kitchen, a sunroom, a two-story foyer, and a whirlpool tub in the master bathroom.

  • No Spring Slowdown for New-Home Sales

    In January, single family new-home sales surged to a five and a half year high, which is giving hope that the new-home sector isn’t going to slow down in Spring after all.

    New-home sales role 9.6% to a seasonally adjusted annual rate of 468,000 units in January. That is the highest it’s been since January 2008.

    Throughout the U.S. in January, new-home sales rose 73.7% in the Northeast, 10.4% in the South, and 11% in the West. However, due to a cold snap throughout the Midwest, new-sales slipped 17.2% there.

    Kevin Kelly, a chairman for the National Association of Realtors commented that, “The fact that the cold weather that hit much of the country didn’t stop home buyers from going out and purchasing a piece of the American dream is a great sign. However, the very low supply of new homes on the market and the continued concern of available buildable lots still have builders cautious about getting ahead of themselves.”

    The new homes for sale inventory generally remained steady throughout January, staying at a tight 4.7 month supply at the current sales pace. Housing starts had posted their largest decline in nearly three years last month, which gave concern about that the new-home sector was going to hit a downward spiral between rising home prices and mortgage rates.

    However, in January, new-home sales rose 2.2% from last January, and the average price of a new home rose to $260,100, a 3.4% increase from last year. The pace of rising home prices has also slowed in the past few months.

  • Spring Selling Rush Coming Early

    Spring is usually the busiest time of year for the housing market, when more people are putting their homes up for sale. However, the spring selling rush seems to be starting earlier this year. Some homeowners are already putting their homes up for sale to advantage of the rebounding home prices and improved equity.

    Sellers are also starting to put home on the market early because they don’t know whether there will be a lot of people listing in the spring- which can cause a big counterbalance towards too much inventory- or if there will be a housing crunch again. Homeowners are trying to get ahead of the market and sell early to be done with it.

    Last year, there was a major home inventory shortage. The availability of homes for sale leading into spring was at a 12-year low. The shortage of homes helped boost prices a little bit, but it gave buyers very little options when looking for a home, and often sparked bidding wars in many markets. The construction of new homes in now at a third of its peak from 2006, which likely is going to keep home inventory tight in the spring. However, it is anticipated that because of improved home prices, there will be more homeowners listing their homes in the spring this year, which will help relieve the inventory crunch.

    During the last four months of 2013, home inventory levels began to increase after a 30-month decline. Inventories also increased in some of the states with the highest tightest markets. Some of these were Arizona, California, Georgia, and Florida.

    Due to the expected rise in inventory levels, home prices are expected to only rise 4% in 2014, as compared to 11% in 2013.

  • Rising Home Prices Lower Affordability

    Strong price gains are starting to lower housing affordability- especially in the West.

    The average price of a single-family home rose in 73% of housing markets in the fourth quarter of 2013, 26% of which had double-digit pricing gains.

    Lawrence Yun, NAR’s chief economist stated that, “The vast majority of  home owners have seen significant gains in equity over the past two years, which is helping the economy through increased consumer spending. At the same time, home prices have been rising faster than incomes, while mortgage interest rates are above the record lows of a year ago. This is beginning to hamper housing affordability.”

    In the fourth quarter of 2013, the average median home price was $196,000, which is 10.1% up from the previous year when it was $178,000.

    The Housing Affordability Index, which is calculated by the relationship between median home prices, median family incomes, and average effective mortgage interest rate dropped in 2013 to 175.8. This is in comparison to 2012, when it was at a 196.5, a record high. The higher the Housing Affordability Index, there’s more purchasing power.

    Yun also comments that the double-digit price growth is due in part to tighter housing inventories. There needs to be an increase in housing activity to help relieve the rising home prices. More housing supply will help to regulate the price growth and provide more affordability, but mortgage interest rates are expected to increase 5% this year.

    These were the five highest housing markets in the last quarter of 2013:

    1. San Jose, CA. at $775,000

    2. San Francisco, CA. at $682,400

    3. Honolulu, HI. at $670,800

    4. Anaheim- Santa Ana, CA. at $666,300

    5. San Diego, CA. at $476,800

    These were the five areas with the best housing affordability in 2013:

    1. Toledo, Ohio

    2. Rockford, Illinois

    3. Decatur, Illinois

    4. Lansing- East Lansing, Michigan

    5. Springfield, Illinois