Top 10 improvements to help sell your house

Start from the outside and work in

A prospective buyer starts by looking at the outside of the house. You’ve heard the term “curb appeal”, so let’s get really specific about it. Bob Edwardsen, 30 year real estate veteran with Windermere Real Estate, states “I’ve had buyers decide not to even view the home at all based on a poorly maintained exterior. They simply say “keep driving” and we move on to the next house.”

What exactly does that mean? According to Edwardsen, “First impressions are everything. The general condition of the exterior of the house which includes fresh paint, an attractive front door, walkways in good repair, and well maintained yard, all make the first impression.”

COLDWELL BANKER REAL ESTATE SURVEY
FIRST-TIME BUYERS DEMAND NEW KIND OF “STARTER HOME”
87 Percent of Beginner Buyers Want Move-In Ready

PARSIPPANY, N.J. (Feb. 8, 2011) – The term “starter home” seemingly refers to an entry-level property – one that is affordable yet needs “tender love and care.”  But amidst the many homes available in today’s market, current first-time buyers want places with a little less “room for improvement.”  In a survey of 300 consumers who purchased their first home in the last year, 87 percent said finding a move-in ready home is important to them.

This survey from Coldwell Banker Real Estate explored what was most important to new buyers to provide insight for those looking to buy or sell in 2011. According to the National Association of Realtors (NAR), first-time home buyers accounted for half of the market in 2010. 

What Surprised First-Time Home Buyers
Several consumers experienced unexpected benefits after buying their first home:

• 67 percent said the market afforded them the opportunity to buy a home sooner than expected
• Half said they found a home in a more desirable neighborhood than expected
• 61 percent were able to get the home at a better price than expected
• 40 percent got more space than expected
• 43 percent locked in a lower interest rate than expected

Here is your weekly update to get you up to speed on the mortgage market as you go into the weekend and meet with clients.  The MBS (Mortgage Backed Securities) market has still been volatile. It’s very difficult to get a grasp on where things are going but I will do my best to explain where we are.

In yet another volatile trading session, lenders were excessively unfriendly with loan pricing out the gate this morning.  However, following a strong 10-year Treasury note auction, MBS prices benefited from a modest benchmark interest rate recovery rally.  The corresponding effect on mortgage rates was widespread re-pricing for the better. Re-pricing for the better = lower rates. Re-pricing for the worse = higher rates.

Unfortunately, even after re-prices for the better, loan pricing was still worse than it was yesterday and the best execution conventional 30 year fixed mortgage rate still moved back up to 4.875%.  We say 4.875% is the best execution conventional 30 year fixed mortgage rate because the average cost to permanently buy-down your mortgage rate from 4.875% to 4.75% is outrageously high, reflecting a complete lack of liquidity for 4.0 MBS coupons in the secondary market.

Next week has only a couple of relevant economic reports scheduled and they come the latter part of the week. The stock and bond markets will be closed Monday in observance of the Martin Luther King Jr. holiday. They will not close early today, but we may see trading thin out as market participants head home for the long holiday.  Look for more details on next week’s events in next Friday’s weekly update.

Here are rates leading into this weekend:

30 year fixed – 4.625% (4.782% APR)

15 year fixed – 4.0% (4.267% APR)

Prices are now at all-time lows. According to the National Association of Realtors (NAR) housing affordability index, home prices are more affordable now than during any other time in our history going back to 1970. In addition, this time of year is especially good for buyers, because activity has slowed down. The school year in full swing and the holiday season cuts the number of active buyers, so sellers are especially motivated to make a deal.