Sellers

20April

Tips for Selling Your House (Part II) | First Preston HT

  • Comments Off on Tips for Selling Your House (Part II) | First Preston HT

20150417rs.bigstock-Happy-Mixed-Race-Couple-in-Fro-80861894Part I of this blog post from the First Preston HT team focused on how to help increase the value of a house through maintenance, landscaping and lite remodeling before selling it.

In Part II, we address the choices a seller has when putting their home up for sale and other things to consider before it hits the market.  First Preston HT knows buying and selling a house will be one of the largest financial decisions a person makes in their lifetime and we want to help you feel knowledgeable about this topic to enable you make educated decisions.

  1. Hire an Agent or Sell It Yourself – A real estate agent can handle the marketing of a property and also determine the best selling price of a house. However, this service doesn’t come free and will cost around 5-6% of the selling price.  Selling the property yourself will save the commission but the seller may miss out on the experience and added services that a real estate agent brings to the table.  First Preston HT offers a great option that avoids the high commission charges while still providing some of the assistance and experience of an agent for a flat fee.
  1. Pre-listing Inspection – Opting to have a home pre-inspected before listing can save lots of time by identifying potential problems with the house that a buyer would later find during the inspection period. This allows the seller a chance to fix them before listing the house to hopefully make the closing process seamless and easy.
  1. Set a Price – It’s important the seller decide whether they want to sell quickly or wait for the best offer. A real estate agent can provide a market analysis to help in this step.  If the seller doesn’t have an agent, they can look at comparable real estate listings in the area to help determine a price.  An appraiser could also be hired to complete an analysis of the house.
  1. 20150417rs.bigstock-Living-Room-With-Lighting-Scon-6459101Get it Ready to Show – This includes cleaning and tidying the house as well as staging to make it look appealing to potential buyers. It can be hard to keep the home looking clean for potential showings, especially with kids and toys, but it is an important tip that might help get the house sold quickly.

First Preston HT hopes this information leaves you feeling well-informed about the several options and choices available when listing a home for sale.  For information on effective ways to manage institutional and individual portfolios nationwide, or to shop for real estate visit First Preston HT. Like us on Facebook. Follow us on Twitter.

24September

Lessons on How Not to Annoy your Real Estate Agent

  • Comments Off on Lessons on How Not to Annoy your Real Estate Agent

AnnoyedAgentHaving a good relationship with your real estate agent can make things easier and it’s important to remember that treating them kindly can go a long way and will encourage them to go the extra mile for you.  Here are a few things NOT to do to your real estate agent:

  1. Don’t cheat on your agent.  Find one agent to work with that you like and stick with them.  They work hard for you in hopes of getting paid.
  2. Don’t haggle over price.  If you are selling your home and your agent thinks you have received a great offer, don’t hold out for a better one.  If you are buying, don’t significantly low-ball the asking price.
  3. Don’t skip out on showings.  If you set up an appointment with your agent to see a home, don’t be a no-show.  This is inconsiderate to your agent.
  4. Don’t waste your agent’s time.  If you aren’t serious about making an offer on a particular property, do not request multiple showings pretending that you are interested.
  5. Don’t stick around for an open house.  If your agent is trying to sell your home, it’s proper etiquette to leave the premises until the event is over.  This allows potential buyers to feel more comfortable to explore your home.
13May

Home Prices are Hot

  • Comments Off on Home Prices are Hot

Home prices continue to rise in what is undoubtedly a seller’s market.  According to Zillow, prices have increased so quickly that about 1,000 local housing markets have reached records in new home prices.

Real estate brokerage firm, Redfin, noted that 40% of the sellers it surveyed plan to price their homes above market value when they list during the second quarter this year.  This is a 33% increase from the start of the year.  Fannie Mae reported in April that 42%, an all-time high, of their 1,000 surveyed homeowners and renters believe that it is a good time to sell.

Home sellers are more likely to receive the asking price from the buyer that pays in all cash.  In markets with fewer cash buyers, home sellers have indicated they are willing to hold out if it doesn’t sell quickly.  For some homeowners they need to get their full asking list price in order to pay off a current mortgage.

home prices are hot

For information on effective ways to manage institutional and individual portfolios nationwide, or to shop for real estate visit First Preston HT. Like us on Facebook. Follow us on Twitter.

15August

Mortgage Rates and the Purchasing Power of a Dollar

Recent testimony by Fed Chairman, Ben Bernanke, has indicated a desire to begin tapering quantitative easing (QE) over the next few months but has stressed that interest rates will remain unchanged until certain economic indicators reflect an improving job market.  Interest rates have been held at record lows while the economy tries to get moving at full speed again.  Bernanke has stressed that he will continue to keep interest rates close to zero percent at least until 2015.

But mortgage rates have already started to climb as the housing sector grows legs.  The 30-year fixed-rate mortgage for this week is 4.56% and the 15-year fixed-rate mortgage is 3.62%.  While historically this is still low, these rates have increased by about 1% over the last 3 months.  Mortgage rates haven’t moved this much at such a quick pace since 2009.  So what does this mean if you are looking to purchase a home in the near future and why should you care about mortgage rates and monetary policy decisions by the Fed?

When mortgage rates rise, the purchasing power of the dollar diminishes in regards to home buying.  The degree to which it diminishes depends on how much mortgage rates fluctuate (inflation has a strong effect on purchasing power too, but that’s another conversation).  A home buyer is more concerned with the monthly cost and affordability of the house rather than just the sticker price of the house.  This is where mortgage rates can dictate how much home is actually affordable.

puchasing-power-mortgage-rates

As Mortgage Rates Rise, Purchasing Power Falls

A 1% increase in mortgage rates will reduce purchasing power by 10.75%.  Likewise, if rates decrease by 1%, a homebuyer will gain a 10.75% increase in your buying power.  What does this look like?  A homebuyer originally decided they could afford to purchase a $600,000 house when rates were at 4.5% (assuming a 30 year loan).  If rates jumped to 5.5% they would now only be able to only afford a $535,000 house.

Even though mortgage rates are starting to creep up, they are still historically at all-time lows which translate into historically high purchasing power.  Comparing rates from early 2011 to late 2012, purchasing power grew more than 22% and has continued to grow as mortgage rates have continued to fall.

The longevity of this current mortgage rate environment will be affected in part by Bernanke’s actions to begin tapering QE and raising the Federal Funds Rate, which could lead to further gains in mortgage rates.  It will be interesting to see if the increase in mortgage rates recently have a negative effect on July’s Pending Home Sales from June’s Pending Home Sales number.

For information on effective ways to manage institutional and individual portfolios nationwide, or to shop for real estate visit First Preston HT.  Like us on Facebook. Follow us on Twitter.

Sources:

http://www.bankrate.com/finance/mortgages/mortgage-analysis.aspx  http://themortgagereports.com/6354/mortgage-rates-purchasing-power

 

25March

The snow has melted and it smells like Spring

  • Comments Off on The snow has melted and it smells like Spring

The snow has melted, the birds are chirping, flowers are blooming, the grass is growing and it smells like Spring. With all these wonderful transitions from the past months comes Spring indoor and outdoor chores. Here are a few reminders to assist:

  • Take a walk around your home and inspect the walls for any irregularities that might need repair
  • There might be a need for brick and mortar repair or paint touchup
  • Caulk around windows
  • Mulch flowerbeds
  • Fertilize yard
  • Prune shrubs
  • Clean gutters
  • Check attic for ventilation and remove any critter nests
  • Have A/C serviced
  • Drain and flush hot water heater
  • Perform maintenance or service garage door and opener

Be proactive and maintain your property in the best possible condition.

19March

BidSelect targets local buyers with featured properties

  • Comments Off on BidSelect targets local buyers with featured properties

With so many buyers starting their home search online, its critical for listing agents to market properties with a solutions provider that can serve up relevant information to the buying community.  With this in mind, BidSelect has implemented technology so that featured properties displayed on the home page are more relevant to the end user.  In addition, they have expand the number of featured properties providing greater opportunity for sellers to increase traffic to their listings.

Visit www.bidselect.com to see the new home page changes.

15January

Is it time to flush your water heater?

  • Comments Off on Is it time to flush your water heater?

The flushing of your hot water heater should be part of an annual home maintenance program. Draining water out of the tank flushes out sediments that settle to the bottom of the tank. The flushing helps ensure safe, energy efficient operation of your water heater. Additionally it helps to extend the useful life of the unit. The service can be done professionally or consider it as a do it yourself project with the following recommendations.

To flush the tank:

  1. For electrical water heaters, turn OFF the power at the circuit breaker. For gas water heaters, turn the thermostat on the unit to the PILOT position.
  2. Connect a garden hose to the drain valve at the bottom of the tank, and put the other end either in a 5-gallon bucket, a floor drain, or run the hose outside.
  3. If you have a recirculation pump for your hot water system, then turn this off.
  4. Shut off the supply valve for the cold water inlet to the water heater.
  5. Open a HOT water faucet in a sink closest to your water heater, and open another HOT water faucet in a sink that is at the highest point in your house (NOTE:  Just a little water will flow out, since you have shut the water supply valve to your hot water heater in the step above).
  6. Open the pressure relief valve at the top of the tank (you might want to place a rag or small bowl under the vent pipe to catch any water drops that might come out).
  7. Open the drain valve on you tank and drain 1 to 2 gallons from the tank.  NOTE: The water coming out of the garden hose will be scalding hot so be careful that the water doesn’t splash anywhere except in the bucket, drain, or outside.  As the water begins to drain out, you will probably notice some small scale or sediment in the water.

To re-fill the tank:

  1. Close the drain valve and remove the garden hose.
  2. Close the pressure relief valve at the top of the tank.
  3. Open the valve for the cold water inlet to the tank, and you should start to hear the tank fill with water.
  4. Watch the faucets that you opened in the house.  After you begin to get a steady stream of water from the faucet, shut that faucet.
  5. For electric water heaters, turn the power back on, and for gas models, turn the thermostat on the water heater back to its ON position.
  6. If you have a recirculation pump, then turn it back on.
  7. Double check that the drain valve is tight.

TEST PRESSURE RELIEF VALVE:  The pressure relief valve is at the top of the tank, with a drain tube extending down from it.  To test the valve, with the water supply valve to your water heater in the open position (i.e., its normal operating position), place a bucket under the vent pipe for the valve, then lift the lever on the valve for a few seconds to let water flush out through the valve.  If little or no water flows out, or if the valve doesn’t shut off, then replace it.  NOTE: The water coming out of the vent pipe will be scalding hot, so be careful that the water doesn’t splash on you.

13January

Short sales in the spotlight

  • Comments Off on Short sales in the spotlight

Finally!  It took a while, but the guidelines issued by the Treasury have placed the spotlight on short sales giving their nod to a viable alternative for homeowners who continue to struggle in this never ending housing crisis.  It comes as no surprise to some.  HomeTelos, who debuted its pre-approved short sale program in 2008, has achieved great success and received positive feedback from homeowners.

A recent article in Managing REO, Treasury Effort May Boost Short Sale Usage, highlights the benefits of these new guidelines for homeowners and servicers alike.  No single decision will undo what has been done, so embracing short sales is a positive sign.

8January

Marketing a house (part 3/3)….

  • Comments Off on Marketing a house (part 3/3)….

The Realtor representing the seller will place the house in a Multiple Listing Service (MLS), which allows a network of other local Realtors to pull up properties for sale by certain specifications. In addition to the local MLS, a home may be placed on a variety of websites for maximum exposure, many of which will offer detailed property information and contact information to set up a showing. Although a house may be marketed well, it does not mean that a sale is imminent if the home is overpriced.

27November

Prepare your home for cold weather

  • Comments Off on Prepare your home for cold weather

Fall is upon us and now is a good time to prepare for the winter.  Below are a few items to consider before it’s too late: 

1) Furnace Inspection – Call an HVAC professional to inspect your furnace and clean ducts.

2) Get the Fireplace Ready – If the chimney hasn’t been cleaned for a while, call a chimney sweep to remove soot and creosote.

3) Check the Exterior, Doors and Windows – Use weather-stripping around doors to prevent cold air from entering the home and caulk windows.

4) Prevent Plumbing Freezes – Insulate exposed plumbing pipes.

5) Prepare an Emergency Kit – Store extra bottled water and non-perishable food supplies (including pet food, if you have a pet), blankets and a first-aid kit in a dry and easy-to-access location.