Blog - Leagan Realty

Knock Your Real Estate Listing Out Of The Park With These Powerful Buzz Words

September 4, 2013 by lizlaurenb Leave a Comment

Knock Your Real Estate Listing Out Of The Park With These Powerful Buzz Words Words are powerful and when you are selling your home, the words that you use in your real estate listing can really impact the first impression that the property makes on potential buyers.

Whether you are writing the real estate listing, or the house is being promoted by a real estate professional, it is important to use the right words to convey the meaning that you intend.

This is especially true when you only have room for a short description, as every word counts.

Here are a few words to use in your description that will really bring positive attention to your real estate listing:

“Within Walking Distance Of…”

Can you walk from your home to the supermarket, the local pub, the shopping mall, the elementary school or the dog park? If so, make sure you advertise this on your real estate listing!

Buyers are looking for homes that are accessible to the major amenities that they use in their everyday lives, because this saves them time and money on fuel and is more convenient.

“Plenty of Storage Space”

Let’s face it, as a nation we tend to be hoarders. Many people have an incredible amount of stuff and they need a house that has enough room to store it all.

A home with plenty of well organized closets and storage space will be desirable, because it will suggest a comfortable and well organized living environment rather than a cramped and cluttered existence.

“Move Right In”

If your home is fully finished and doesn’t require any renovations, make sure that potential buyers know this. A home that is in “move in condition” will be very desirable to some people who don’t want to take on the headache and hard work of a fixer-upper.

“Light and Spacious”

We are attracted to bright open spaces and floor plans that have a comfortable flow, rather than small and dark compartmentalized hallways and rooms. If your home has a lot of natural light and an open floor plan, this is a great attribute that you should highlight in the listing.

To find out more about listing your home and generating interest in your property, contact trusted real estate professional today.

What Happens If You Find Your New Home Before You Sell Your Old One?

September 3, 2013 by lizlaurenb Leave a Comment

What Happens if You Find Your New Home Before You Sell Your Old One? What happens if you find the dream property that you want to buy before you have made the sale on your old property? Ideally you would have sold your current home before you buy your new property.

However, sometimes the transition doesn’t work out that way. You don’t want to give up the purchase if you have found a bargain on your dream home, so is it possible to buy the property before you have closed on your current residence?

The answer is yes, it is possible. You will need to use a financing option that will allow you to secure your next home before you have sold your existing property.

Getting A Bridge Loan

One option is a bridge loan. This is designed to wrap your payments for your current home and your future home into one loan, which can last usually between six and twelve months.

This type of loan usually involves a small fee and you will also be responsible for the closing cost on the mortgage on your next home.

Borrowing From Your 401K

Another option that might work is to borrow from your 401K, if your company allows it. In this situation, you will be able to borrow the money and then repay it right away when you sell your home. Of course, make sure you find out the rules on this first so that you are not at risk of incurring any penalties with the IRS.

Taking Out A Personal Loan

Another possible option is to take out a personal unsecured loan. Keep in mind, these types of loans usually have high interst rates and they will only last for a few years. Also, you will need to include the payments that you are making on that loan when you are qualifying for a mortgage on your next home.

Advantages To Buying Before Selling

One thing to keep in mind is that if you buy a new home before selling your old one, you will save yourself from a period of transition when you are between homes. Also, you will only need to hire a moving company once and you won’t have to put anything into storage, which will save you money.

For more information on how to make the best transition into your new home, speak with your trusted real estate professional today.

7 Simple Steps To Finish Your Basement This Holiday Weekend

August 30, 2013 by lizlaurenb Leave a Comment

7 Simple Steps To Finish Your Basement This Holiday Weekend Not only does the Labor Day weekend signal a little time off work, but it also indicates a close to the summer season, which means it’s time to get ready for colder weather.

So get in the spirit of the long weekend and put the labor of love into your home by creating a cozy hideaway that your family can retreat to once the outdoors become too chilly.

One of the best places to create this snug space is to mimic hibernating animals and go under ground — to the basement.

Whether your lowest level needs a facelift or is completely unfinished, Labor Day weekend is the perfect time to make a game plan and get started on remodeling your basement.

Step 1 – Obtain A Permit

Before you can just slap up insulation and drywall, you need to make sure your basement is even fit to dwell in.

Check with your city to ensure there aren’t any permits you need to obtain and that the space is up to code. If you don’t do it right, then this update could haunt you when it comes time to sell.

Step 2 – Get The Air Flowing

You’ll want this space to be warm in winter and cool in the summer. Contact a contractor to see if getting air to this lower level will be as easy as tapping into your current HVAC system and whether or not your existing appliance can handle the extra space.

Step 3 – Design And Frame

Now comes the fun part. Decide what you want down there! A bedroom or two, a man cave, or TV room; a blank slate provides all sorts of exciting options. Once you’ve got a plan, start framing it out.

Step 4 – Add Emergency Exits

This underground level needs exit points that go directly outside. So, install a back door or windows that someone could fit through in case of emergency. If there are bedrooms in the design, they also each need their own exit point.

Step 5 – Insulate And Drywall

While the ground surrounding your home provides some insulation, you’ll want to properly insulate around the perimeter and in between rooms to provide a noise barrier. Then put up the drywall.

Step 6 – Install Flooring

Pick out your flooring, such as wood, tile, carpet or vinyl. It mostly depends on what type of rooms you’re planning to create. Make sure your floors are level before you lay anything down. It’s especially common to find slanted floors in older homes.

Step 7 – Paint And Decorate

You’re almost finished! Pick out your paint colors, move in your furniture and enjoy your new cozy hideaway. Colder weather will be here before you know it, so use the long Labor Day weekend to get this project started.

Pending Home Sales Indicates That The Housing Recovery Is Progressing

August 29, 2013 by lizlaurenb Leave a Comment

Pending Home Sales The National Association of REALTORS reported Wednesday that pending sales of existing homes fell by 1.30 percent in July.

According to the organization’s Pending Home Sales Index, this was the second straight month that pending home sales dropped. July’s Pending Home Sales Index reading was 109.50.

Signed Purchase Contracts For Existing Homes Tracked In The U.S.

·Northeast: – 6.60 percent
·Midwest: – 1.00 percent
·West: – 4.90 percent
·South: + 2.60 percent

Pending home sales were 6.70 percent higher year-over-year on a national basis. This indicates that the housing recovery is progressing, but at a slower pace.

Short supplies of available homes have also impacted sales. In some areas homebuyers are facing competition from multiple buyers for individual homes.

Another report released earlier in the week showed that the pace of rising home prices also slowed. This connects with fewer pending home sales, as when demand for homes cools, prices are likely to fall as well.

Pending home sales serve as an indicator for future home sales, as purchase contracts typically lead to completed home sales within two to three months.

Housing Market Developments Could Delay Fed Stimulus Decision

The Federal Reserve has indicated that it may begin reducing its stimulus program of buying $85 billion per month in U.S. Treasury bonds and mortgage-backed securities.

The Fed has repeatedly stated that continued monitoring of economic trends would weigh heavily on its decision if and when to modify its current stimulus program.

Mortgage rates have risen more than a percentage point since May when the Fed began discussing potentially “tapering” its monthly bond purchases.

The Fed may interpret the slower pace of rising home prices and pending home sales as a sign that it’s not yet time to reduce its stimulus program. This could help with lowering mortgage rates, which are expected to rise when the Fed reduces its monthly securities purchases and eventually ends its stimulus plan.

Housing has led the economic recovery; faltering indicators in the housing sector suggest that the overall recovery is a fragile process.

Case Shiller Price Index Shows Home Prices Are Still Increasing

August 28, 2013 by lizlaurenb Leave a Comment

Case Shiller Price Index Shows Home Prices Are Still Increasing Home prices are still rising, but at a slower pace according to the S&P Case-Shiller Home Price Indices for June. Home prices for the cities surveyed in the HPI rose by 12.10 percent on an annual basis as compared to May’s reading of 12.20 percent.

This is the highest rate of monthly growth for home prices since the peak of the housing bubble in 2006.

June’s home prices remained approximately 23 percent lower than peak prices, but economists consider the bubble peak an anomaly and caution against comparing current home prices to the peak prices seen in 2006.

Overall Housing Price Increase Strongly

Regional home prices reported in June’s HMI were mixed. Case-Shiller publishes a 10-city Index and a 20-city Index of home prices. 13 of 20 cities saw their rates of rising home prices decline from May to June.

Atlanta posted the highest month-to-month gain in home prices at 3.40 percent. Washington, D.C. posted the slowest month-to-month gain in home prices at 1.00 percent.

New York City posted a monthly gain of 2.10 percent in home prices in June; this was its highest rate of increase since 2002.

Both S&P Case-Shiller Home Price Indices for June showed annual growth in home prices. The 10-city index posted an annual gain of 11.90 percent and the 20-city Index posted an annual growth rate of 12.10 percent. Las Vegas enjoyed the highest annual rate of home price growth at 24.90 percent.

In year-over-year price gains, Las Vegas and San Francisco’s gains exceeded 20.00 percent, while Atlanta, Detroit and Phoenix posted year-over-year gains of 19.00 percent, 16.40 percent and 19.80 percent respectively.

These figures suggest there’s plenty of room before prices begin to fall, but David M. Blitzer, chairman of the Index Committee and S&P Dow Jones Indices, noted that “the monthly city-by-city data show the pace of price increases is moderating.”

Rising Mortgage Rates, Limited Supply Of Homes Slowing Home Price Growth

Mortgage rates remain historically low, but have risen sharply over the last few weeks. This trend, coupled with persistently low inventories of available homes is seen as a significant reason for slower growth in home prices.

Investors and would-be home buyers are also waiting to see if the Federal Reserve reduces its monthly stimulus program; such a reduction would likely cause mortgage rates to rise further.

The Fed has not set a date for “tapering” its monthly stimulus, but has indicated it will do so soon if economic conditions continue to improve.

Existing Home Sales Report Shows Highest New Home Inventory Since January 2012

August 27, 2013 by lizlaurenb Leave a Comment

Existing Home Sales: Highest New Home Inventory Since January 2012 The National Association of REALTORS reported that existing home sales for July came in at 5.39 million on a seasonally adjusted annual basis. July’s reading exceeded both expectations of 5.21 million existing homes sold and June’s reading of 5.06 million homes sold.

This suggests good news for home buyers who’ve been constrained by limited supplies of homes for sale.

As home prices continue increasing in many areas, more homeowners are likely to list their homes for sale. Existing home sales for July rose by 6.80 percent year-over-year.

The Federal Housing Finance Agency Home Price Index reported a 7.70 percent year overyear increase in prices for homes financed by Fannie Mae or Freddie Mac.

This reading was slightly higher than May’s year-over-year reading of a 7.60 percent increase in home prices.

New Home Sale Inventories Also Growing

New home sales for July dropped by 13.40 percent to a seasonally adjusted annual reading of 394,000; this was lower than expectations of 485,000 new homes sold, but this expectation was based on June’s original reading of 497,000 new homes sold. June’s reading has been adjusted to 455,000 homes sold, which likely would have resulted in a lower expectation.

New home sales were lower in all four U.S. regions:

-16.1 percent in the West

-13.4 percent in the South

-12.9 percent in the Midwest

– 5.7 percent in the Northeast

While this isn’t great news for developers and home builders, supplies of new homes for sale jumped from a 4.30 month supply of new homes in June to a 5.20 month inventory of available new homes in July. This was the highest inventory of available new homes since January 2012.

Monthly New Home Sales Continue Upward Trend

Month to-month sales of new homes tend to be volatile, but July’s year-over-year home sales were 6.80 percent above new home sales in July 2012.

Higher mortgage rates likely stifled sales, but slower sales would increase inventories of available homes. More homes available would help ease constraints on buyers and level then playing field for home buyers who have been competing for few homes in strong seller’s markets.

Rising mortgage rates could continue, especially if the Federal Reserve begins tapering its $85 billion in monthly bond purchases, a program known as quantitative easing. The Fed has announced that it may start reducing the QE program before year-end.

When QE purchases are reduced, securities prices can be expected to fall due to less demand, and mortgage rates can be expected to rise.

What’s Ahead For Mortgage Rates This Week – August 26, 2013

August 26, 2013 by lizlaurenb Leave a Comment

What's Ahead For Mortgage Rates This Week- August 26, 2013 Last week brought mixed economic news, but Leading Indicators released Thursday suggest that the U.S. economy is growing at a moderate rate.

Mortgage rates for fixed rate loans were higher, but the average rate for a 5/1 adjustable rate mortgage was unchanged from the prior week. Weekly jobless claims were also higher.

The National Association of REALTORS released its Existing Home Sales report for July and reported existing home sales came in at 5.39 million on an annualized basis.

This reading surpassed expectations of 5.21 existing homes sold as well as June’s reading of 5.06 million existing homes sold on an annualized basis.

FOMC Minutes Released, Mortgage Rates Rise

The minutes for the July 31 FOMC meeting were released, and emphasized the likely “tapering” of the Fed’s quantitative easing program possibly as early as September, though no dates have been set. Many of the FOMC members support reducing the $85 billion in monthly securities purchases made by the Fed; fewer members supported tapering the asset purchases sooner than planned.

Previous announcements by the Fed regarding its plan to reduce QE have created erratic responses in financial markets, but the release of the meeting minutes seemed to cause a sharp rise in mortgage rates.

Freddie Mac reported that the average rate for a 30-year fixed rate mortgage moved from the prior week’s average rate of 4.40 percent to 4.58 percent; average discount points moved up from 0.70 to 0.80 percent. Average rates for a 15 year fixed-rate mortgage also rose from 3.44 percent to 3.60 percent with average discount points moving from 0.60 to 0.70 percent.

Average rates for a 5/1 adjustable rate mortgage were unchanged from the previous week at 3.21 percent with average discount points paid at 0.50 percent.

FHFA reported that home prices for homes with mortgages owned by Fannie Mae and Freddie Mac rose by 7.70 percent year-over-year in June, home prices rose slightly from May’s year-over-year- rate of 7.60 percent.

Leading Economic Indicators (LEI) for July rose by 0.60 to a reading of 96.0; this exceeded expectations for an increase of 0.50 percent. The LEI measures the health of the economy by measuring 10 top economic sectors; eight of 10 factors measured increased; these were led by the spread on interest rates, availability of credit, stock prices and permits issued for building new homes.

New home sales for July were lower than expected at 394,000; Wall Street expected new home sales to come in at 485,000 on a seasonally-adjusted annual basis against the revised number of 455,000 new home sales reported for June. 497,000 homes were initially reported sold in June. Hew home sales gained by 6.80 percent year-over-year in July.

What’s Coming Up

Scheduled economic news for this week includes the Case-Shiller Home Price Index, and Consumer Confidence on Tuesday, Pending Home Sales will be out Wednesday. Thursday brings Weekly Jobless Claims, and Friday brings consumer spending and the University of Michigan’s consumer sentiment report.

Preventing And Clearing Clogs In Your Home

August 23, 2013 by lizlaurenb Leave a Comment

Preventing And Clearing Clogs In Your Home You’re brushing your teeth and you turn on the faucet. It’s not draining and starts to back up. Here’s the dilemma; do you spit and let it sit or run to the kitchen? One thing is for sure; having a clogged drain can be a major annoyance.

Clogs not only frustrate a homeowner but they can be hard on your plumbing. The added pressure they create puts stress on your pipes and can shorten their lifespan.

So end the issue by following the guidelines below. You’ll learn how to prevent clogging and clear the ones you already have.

No Food Down The Drain

Even if you have a disposal, it’s not good for your pipes to have sticky, mushy food shoved through them. Peel vegetables and scrape plates into the trashcan.

Also, avoid pouring grease down the drain. Animal fat can congeal into a solid and form a blockage. Instead, store it in a sealable container in the freezer. Once it’s full, trash it!

Only TP In The Toilets

All feminine hygiene products should be thrown away, because most don’t dissolve quickly enough and can cause a backup. And be sure to secure toilet lids from curious children, because you have to admit that it is pretty fun to watch almost anything go “bye-bye.”

Hair Today, Problem Tomorrow

Don’t wash loose hair down the drain. Collect it and throw it away after your shower. If you shed a lot, it might be beneficial to install drain screens to catch loose hair and make it easy to dispose. Be sure to clean these out every few weeks.

Chemicals Should Be Used With Caution

Be wary about using chemical drain cleaners. They can erode cast-iron pipes and usually don’t remove an entire clog, so it can easily recur. You should consider hiring a professional plumber to snake your drains; or better yet, buy your own augur at the hardware store for about $15.

Homeowners can be hard on their drains. From hair to food, clogs are a time-consuming frustration that might cost you big. Treat your plumbing with a little love and it’ll reward you by quickly removing water and waste from your sight!

For more helpful tips on periodic home maintenance, please feel free to contact your trusted real estate professional today.

Fed Meeting Minutes Reflect Support For Reducing QE Program

August 22, 2013 by lizlaurenb Leave a Comment

Fed Meeting Minutes Reflect Support For Reducing QE Program The minutes of last month’s Federal Open Market Committee (FOMC) meeting show significant support for tapering the Fed’s current amount of monthly securities purchases. These purchases, known as quantitative easing (QE), are an effort to maintain lower long-term interest rates including mortgage rates.

The Fed has been buying $85 billion per month in Treasury securities and mortgage-backed securities (MBS).

Ben Bernanke, chairman of the Federal Reserve and FOMC has hinted at “tapering” the Fed’s securities purchases by year-end in recent statements. The FOMC minutes released Wednesday further suggest that tapering based on strengthening economic trends is likely.

FOMC Members Express Mixed Views

The minutes for the last FOMC meeting, which took place on July 30 and 31, states that many members are “broadly comfortable” with tapering QE securities purchases later this year if the economy continues to improve. At the same time, many FOMC members indicated that it “isn’t yet time” to scale back the purchases.

All along, the FOMC has emphasized that it will closely monitor domestic and global financial and economic developments as part of its decision about when tapering the QE purchases will begin.

The minutes for July’s meeting reflected this sentiment and noted “A few members emphasized the importance of being patient and evaluating additional information on the economy before deciding on any changes to the pace of asset purchases.”

On the other side of the issue, the minutes note that a few members said that “It might soon be time to slow somewhat the pace of purchases as outlined in the QE plan.”

QE Tapering Not The Only Influence On Mortgage Rates

The Fed is likely to monitor its words as well as economic conditions, as previous announcements about tapering QE made by Chairman Bernanke and FOMC have created havoc in world financial markets.

In relation to mortgage rates, it’s likely that tapering QE purchases will cause mortgage rates to rise. Demand for bonds will fall as the Fed reduces its purchases, falling bond prices usually cause mortgage rates to rise.

It’s important to keep in mind that tapering QE securities purchases is only one among many things that can impact financial markets, mortgage rates and the economy.

While the Fed is expected to begin tapering its securities purchases as soon as September, developing economic news throughout the world can potentially impact mortgage rates and could cause the Fed to revise its timeline for tapering the volume of its securities purchases.

It’s Important To Follow These Specific Steps When Using Gift Funds For Your Down Payment

August 21, 2013 by lizlaurenb Leave a Comment

It's Important To Follow These Specific Steps When Using Gift Funds For Your Down Payment As lenders tighten mortgage guidelines for Scottsdale home buyers, minimum downpayment requirements are increasing.

Several years ago, you could finance a home with nothing down. Today, most conventional mortgages require at least 5 – 10 percent.

Incidentally, these guideline changes have led to an increase in the number of home buyers accepting cash gifts from family.

Gifts are allowed in most cases but the problem is, if you don’t accept the gift in a “lender-friendly” way, the mortgage underwriter could reject it, and negate it.

Three Steps To Success With Your Down Payment Gift Funds

You can’t just deposit a cash gift into your bank account. You have to follow a series of steps and keep records.

Provide an acceptable gift letter signed by all parties
Provide documentation of the gifter’s withdrawal of funds via teller receipts
Provide documentation of the giftee’s deposit of funds via teller receipts

Lenders require these 3 steps for two basic reasons. First, they want to make sure that the cash gift is “clean” (i.e. not laundered). Second, they want to make sure the gift is really a gift and not a loan-in-disguise. It’s why lenders typically require that the loan application be accompanied by a signed, dated letter.

For example:

I am the [relationship to recipient] of [name of recipient] and this letter serves as evidence that I am gifting [name of recipient] [amount of gift] to be used for the purchase of the home at [complete address of property]. This is a gift — not a loan — and there is no expectation of repayment. Signed, [Signature of gifter]

Keep The Cash Gift Funds Separate From Your Other Money

As an additional step, home buyers receiving cash gifts should make sure that gifted funds are not commingled at the time of deposit.

If the cash gift is for $10,000, therefore, the bank’s deposit slip should indicate that a $10,000 deposit was made — nothing more, nothing less. Don’t add a random $100 deposit to the transaction, in other words. The $100 deposit should be a separate transaction.

It’s also worth noting that gifting funds between family members can create both legal and tax liabilities.

If you’re unsure about how donating or receiving a gift may impact you, call or email me directly. If I can’t help you with your questions, I can refer you to somebody that can.