Home Buyers Don’t Need to Fear

Home shoppers no longer need to tremble all the way to the lenders’ office or have nightmares over being denied  a home loan – all the troubles that have been prominently spotlighted by many news reports in recent years. A new report confirms: It’s getting easier to get a mortgage – and as a bonus, borrowing costs are still low. 

Over the past year and a half, the federal government and enterprises have taken several steps toopen up the credit box, and the efforts may finally be showing signs of paying off.

Credit scores on closed loans in September dropped to the lowest level since Ellie Mae began collecting the data in August 2011, according to Ellie Mae’s latest Origination Insight Report. The average FICO score for closed loans has fallen throughout the year – from 731 in January to 723 in September.

Closing rates remained high with more than 66 percent of all loan applications closing for the third consecutive month. The closing rate on purchase loans rose to 71 percent. Also, the time to close on all loans dropped for the fourth consecutive month to 46 days.“Average credit scores declined to the lowest levels we’ve seen since 2011,” said Jonathan Corr, president and CEO of Ellie Mae. “We are also seeing rates fall while the time to close is also decreasing. It will be interesting to see if these trends continue as we begin to see impacts from TRID.”

And more good news for buyers: The 30-year fixed-rate mortgage continues to remain well-below 4 percent. Freddie Mac reported this week that average rates were 3.79 percent nationwide for the week ending Oct. 29, down from 3.98 percent a year ago. Fifteen-year fixed-rate mortgages averaged 2.98 percent, down from 3.13 percent averages a year ago.

Contact Stacey Guzanick 262.490.3696,   RE/MAX Realty Center  Guzanick@gmail.com,  if you have questions about buying a house or selling one.

I can  guide you  toward your next home.

www.HomesWithStacey.com

See you at the closing!

5 Paint Mistakes Sellers Should Avoid

The wrong paint color can be a big turn-off to potential home buyers. House Beautiful recently highlighted some of the worst mistakes home owners can make when it comes to painting their house, including:

2. Too many colors from room to room. Some home owners may opt for a different color scheme for each room. "Even when I don't use the same colors everywhere, I still like the rooms to feel connected," designer Mona Ross Berman says. "The bedroom should never feel like it's in a completely different house than the living room. The whole house has to make sense as one." 1. Painting a ceiling a flat white color. "I never paint a ceiling dead white because all white paint has a bit of gray in it, and it takes the room down," designer Athalie Derse told House Beautiful. Instead, she suggests choosing a cream shade.

3. Using the same color palette for the entire house. On the flip side, home owners who only stick to one color palette may be making the home too bland. "A two-color scheme can be great, but there has to be some relief, or it comes across as too pat and makes everything seem stiff," says designer Tom Scheerer.

4. Matching too much. "You never want to match your walls to a color in one of your fabrics," designer Sallie Giordano says. "It will be too strong. Find a grayed-out version of the color." 

5. Use neutrals to balance out color. Some home owners may be tempted to go overboard with one color. "The biggest mistake people make when they're trying to be colorful and exciting is to forget that you need to balance it with neutrals," says designer Todd Klein. He adds that architectural elements in white or even a few gray throws can give visitors' eyes a place to rest.

Contact Stacey Guzanick 262.490.3696,   RE/MAX Realty Center  Guzanick@gmail.com,  if you have questions about buying a house or selling one.

I can  guide you  toward your next home.

www.HomesWithStacey.com

See you at the closing!

More Sellers, Buyers Say: We Need an Agent

Fewer home sellers and buyers are opting to navigate their home sale or purchase on their own, according to the National Association of REALTORS®’ 2015 Profile of Home Buyers and Sellers report. Nearly 90 percent of respondents surveyed say they worked with a real estate agent to buy or sell a home.

Eighty-nine percent of sellers said they sold their home with an agent, while for-sale-by-owner sales only accounted for about 8 percent of transactions (down from 9 percent the last three years).That has pushed for-sale-by-owner transactions to the lowest share ever, according to the survey.

“Although the Internet and digital technology have created several channels for sellers to market their listings to a wider cast of potential buyers, the preference to use a REALTOR® to sell a home has never been stronger,” says Chris Polychron, NAR’s president.

The majority of home buyers reported that the Internet was their first step in their home search. Still, 88 percent of buyers who searched for homes online ended up purchasing through a real estate agent.

“Although buyers between the ages of 18-24 were the most likely to use an agent (90 percent), over 85 percent of buyers in each of the other age categories also used an agent during their home search,” Polychron says. “With tight inventory conditions leading to stiff competition in several parts of the country and what’s found online sometimes not entirely accurate, buyers are turning to REALTORS® for expert advice and assistance in navigating today’s fast-moving housing market.”

The home search resources that are gaining the most popularity lately are mobile and tablet applications, increasing from 45 percent in 2013 to 61 percent use among buyers this year.

Source: National Association of REALTORS®

Contact Stacey Guzanick 262.490.3696,   RE/MAX Realty Center  Guzanick@gmail.com,  if you have questions about buying a house or selling one.

I can  guide you  toward your next home.

www.HomesWithStacey.com

See you at the closing!

Home Sellers Net Highest Profits in 8 Years

Rising home prices over the last few years are finally putting more money back into home sellers’ pockets. Home owners who sold during the third quarter saw an average price gain of $40,658 – or 17 percent – from the purchase price of their property – the highest average price increase for sellers since the third quarter of 2007, according to RealtyTrac’s Third Quarter 2015 U.S. Home Sales Report.

Read more: Fall Home Sales Rebound: 5 Stats to Know

“An increasing number of home owners in 2015 have been cashing out the home equity they’ve gained during the housing recovery of the past three years,” says Daren Blomquist, vice president at RealtyTrac. “That may be a good decision because the data points to a plateauing market going forward. Home price appreciation is slowing, a trend that will continue if interest rates rise in the coming months as expected. Meanwhile the threat of rising interest rates combined with lowered premiums for buyers using FHA loans is spurring more demand.”

In its analysis of 171 counties nationwide, RealtyTrac found that the following counties saw sellers, on average, see some of the largest gains in the third quarter:

• San Francisco County, Calif.: 58.7% gain
• San Mateo County, Calif. (San Francisco metro area): 55.7%
• Santa Clara County, Calif. (San Jose metro area): 47.7%
• Alameda County, Calif.: 43.1%
• New York County, N.Y.: 41.6%

RealtyTrac’s report also showed the following counties posted the largest year-over-year increases in home prices:

• San Mateo County, Calif.: up 17.6%
• New York County, N.Y.: up 16.1%
• Santa Clara County, Calif.: up 15.7%
• Weld County, Colo. (Greeley metro area): up 14.6%
• San Francisco County, Calif.: up 13.3%

Contact Stacey Guzanick 262.490.3696,   RE/MAX Realty Center  Guzanick@gmail.com,  if you have questions about buying a house or selling one.

I can  guide you  toward your next home.

www.HomesWithStacey.com

See you at the closing!

Buying or Selling

Contact Stacey Guzanick 262.490.3696,   RE/MAX Realty Center  Guzanick@gmail.com,  if you have questions about buying a house or selling one.

I can  guide you  toward your next home.

www.HomesWithStacey.com

See you at the closing!

Why Buyers Need to Buy That New Home Now

Your client has decided on new-home construction, but they're dragging their feet. Need to give them extra motivation to get that contract signed this fall or winter?

“Fall and winter are a great time to start working with a builder and do much of the upfront planning and legwork that goes into a new-construction home,” says Brian Brunhofer, president of Meritus Homes. “Plus, there are some definite advantages to beginning that process before the end of the year that buyers might not be aware of.”

1. Low interest rates: The 30-year fixed-rate mortgage is still under a 4 percent average, according to Freddie Mac. But most economists are predicting that interest rates will soon be on the rise, and when rates do rise that will deflate buyers’ purchasing power.BUILDER online recently highlighted some of those advantages, including:

2. Buffering in more time: Many buyers fail to take into account the length of the permitting and approval process, which has to take place before the actual construction. “The reality is that after a buyer signs a contract with us, it takes anywhere from 60 to 90 days to get architectural plans submitted and permits approved before we actually start construction,” Brunhofer says. “Buyers who begin that process in the fall or winter can relax knowing they have plenty of time to get all those details taken care of and be 100 percent ready to roll when the early spring construction season starts. And if we have a mild enough winter, we might be able to get a jump on construction for them even earlier in the year.”

3. Taking advantage of the financial benefits: Before the end of the calendar year, builders will have secured their 2016 contract prices for labor and building materials. As such, they’ll adjust their home prices to reflect any increased costs. Buyers who decide to sign a contract with a builder this fall rather than waiting until next spring may see some cost savings by taking advantage of 2015 pricing. 

4. Timing the market right: Many families prefer to be able to move into their new-home prior to the beginning of a school year. Buyers who work with builders in the fall and winter will likely be ready to move into their new home by next summer. “Buyers should expect anywhere from five to six months of actual construction time,” Brunhofer says. “That means if we get all the upfront approvals and permitting taken care of during the fall and early winter, we’ll start work the minute the ground thaws and we’ll be wrapped up in time for a summer move-in date.” Also, for buyers with an existing home to sell, they will be able to sell their current home then during the spring time, which is traditionally a busier housing market.

Contact Stacey Guzanick 262.490.3696,   RE/MAX Realty Center  Guzanick@gmail.com,  if you have questions about buying a house or selling one.

I can  guide you  toward your next home.

www.HomesWithStacey.com

See you at the closing!

Checklist to Complete Before You Sell Your Home

Contact Stacey Guzanick 262.490.3696,   RE/MAX Realty Center  Guzanick@gmail.com,  if you have questions about buying a house or selling one.

I can  guide you  toward your next home.

www.HomesWithStacey.com

See you at the closing!

Winter Prep Saves Money

Remind Clients: Winter Prep Saves Money

Whether they're snowy and frigid or just blah and wet, winter months drive many to spend more time in their homes. Help your clients ward off cabin fever with the tips posted by financial site Wise Bread to winterproof homes.

Next up, seal areas of the home where pests can enter, since they hate the winter too. Closing up cracks on the outside can prevent rodents from entering, and storing firewood at least 20 feet from the house will help keep mice and ants away.Writer Mikey Rox offers nine tips to get through the winter happier and healthier. First on his list: Acclimate to the temperature by setting thermostats down, not up. Gradually lowering the thermostat, by a degree a week to a point where you still feel comfortable, can save bundles of money. Sealing or wrapping windows can add to the effect.

Before snow sets in, clearing vents and chimneys can avoid carbon monoxide backups. Leaves, vines, shrubs, and plants can all create blockages that can cause carbon monoxide to enter the home.

Rox also suggests winterizing pipes to keep them from freezing and possibly bursting. This includes sprinkler systems, exterior pipes, and air conditioners.

Contact Stacey Guzanick 262.490.3696,   RE/MAX Realty Center  Guzanick@gmail.com,  if you have questions about buying a house or selling one.

I can  guide you  toward your next home.

www.HomesWithStacey.com

See you at the closing!