Anytime that you are purchasing a home or refinancing your mortgage you will need an appraisal. The appraisal is also referred to as a URAR (Uniform Residential Appraisal Report) the cost ranges anywhere from 350.00 for a single family home or condominium to 500.00 for a multifamily property.

 The purpose of the appraisal and the reason it is required is to ensure that the value of the home is there for both the borrower and the lender.  The appraisal is a comparative look at the home that you are buying or refinancing compared to other similar homes in the neighborhood. The range that is typically used is a mile radius surrounding your home. Homes with similar square footage, bedroom and bathroom counts, amenities etc. are used as comparables against your home’s value.

 Actually the appraisal is the most important part of getting your financing. Other than needing to qualify income wise to be able to secure financing ultimately the bank or lender is basing your financing around your home. Your home is used as collateral for the bank or lender so the appraisal is very important in that aspect.  This is why some lenders will not lend on what we will refer to as “unique” properties. For example log cabin homes or contemporary homes. Ultimately the home itself is all the bank has to fall back on if the loan defaults and if it is a log cabin style home for example and that is not common to your area some lenders will have a hard time lending on these properties. Mainly because if the loan defaults the lender then needs to proceed to sell or liquidate that home and if it is “unique” it would be much harder for the lender to do that.

One thing is certain; in 2009 it will still be a buyer’s market. The most recent stat that I have seen is Fairfield County and that is an 18 month inventory of existing homes. That is a good amount of inventory and could very well be a good indicator that 2009 may not shape up to be any better than 2008. As optimistic as I am or want to be stats are stats and that is a huge inventory.

If you have been waiting on the sidelines as a Real Estate investor 2009 may very well be your year for the taking. I personally believe that we still have some downside to the housing market here in Connecticut. However with the vast inventory of homes and some research there are some incredible buys out there. I have personally seen homes that had sold close to 300k at their peak and being short sold for fewer than 100k.

The equity markets started out the New Year on positive footing although there was little news out there to trade on. The Dow Jones opened trading on January 2, 2008 and closed that day at 13, 043. On January 2, 2009 the Dow Jones started the first trading day of the year at 8,772. Looking back at 08’ the equity markets certainly had a rough time of it. I think 2009 will be bumpy however I do not think that it will be as volatile as last year. I also do not put much faith in a huge rebound of the Dow. I am optimistic that by year’s end we will hopefully be past the half way point of this financial meltdown and am looking at 2010 to be a better year for the equity markets.

Mortgage rates are AWESOME. They are the lowest that they have been in over 50 years. 30 year fixed rate mortgages have been under 5% now for close to a month. Refinance business has been strong but as good as rates are there are still several problems standing in the way. For one the housing market is still declining making it very difficult to get the appraised values that would be needed to make refinancing an option for some. Two is unemployment. It is hard to be able to qualify for a lower mortgage payment when you are not employed. I think for at least the first half of 09’ that rates will remain low. It would be in the Fed’s best interest to see that happen. I truly believe that employment is going to be the key to making the turning point of this mess but I also believe that low rates will also be helpful.

I have posted earlier on Loan Classroom how mortgage rates are derived. A combination between the MBS (Mortgage Backed Securities) and the Ten Year Treasury Bond. Here is a chart of the Ten Year Bond.

I think that we can see the 10 Year Treasury stay in the low 2.00% range for some time. So I am optimistic that we will see rates stay in the low 5 to under 5% range for a while.

Selling Real Estate in this environment is tough. If you are a seller you have to be patient, you also need to be realistic. Although I see values going lower still you need to find a good Realtor. If you are using a Realtor to sell your home he or she should be able to give you a plethora of info on your local market including expected turn times of homes sitting on the market. If they cannot or are not ready to sit down and go over this with you, look for a new Realtor. You also may want to be creative when listing your home in 2009. That could mean painting rooms, keeping the house extra clean when being shown and also staging your home. I have posted several blogs on helping you sell your home in 2008. One specifically on staging your home. You should also ask your Realtor for their advice on what might help sell your home.

In 2009 all things considered I think we are still going to have a tough go at it. Patience is going to be the key as is creativity. There are still a lot of hurdles to overcome but I am optimistic that coming into 2010 we will be sitting in a much better position than we are starting 2009 in.  

Purchasing a home in Connecticut? Call us today to get pre-approved 203-838-6760

If you have never owned a home before and are looking to buy you are going to be at the right place and the right time! Now is a great time to buy. If you are willing to be in your new home for the next 5-10 years you will have your pick of the litter.

Home prices have fallen, substantially more in other parts of the country then here in CT. Florida, Nevada, Arizona, California for example and honestly even though some states have seen less of a decline in housing prices than other states it is still a great time to buy. I am not saying this is bottom, if I knew that I would not be here typing this blog, what I do know is even if prices do fall some more from here in the long run you will make out. You will never  find the bottom to buy and the same goes for selling, you will never find the top.

With interest rates as low right now as they are under 6% it is definitely the time to buy. That house that was once 400k and a bit out of your reach is probably now 300k and may be well within your reach. If you are a seller that is going to in turn be looking to buy you certainly are going to sell your home for far less than it would have a year or so ago but look at the pros and cons your new home that you will be buying will also be far less in price then it was a year or so ago so it is a trade off

Applying for and shopping mortgage rates is a click away www.EversleyCapital.com or call us today for Connecticut’s lowest rates 203-838-6760

There is something to be said about a neat and tidy house when you are sorting through house after house looking for the perfect home for you and your family. This is something that should be kept in mind when selling either a personal home or an investment property. There are a few other things you should keep in mind when it comes to selling real estate. One of those things is that staging sells homes.

Seriously, there is something cold about an empty house. It could be painted impeccably and meet every possible standard a family has and yet feel cold and anything but homey when walking through the home for a real estate tour or inspection. This can be easily overcome by contacting a local furniture rental store and picking out furniture that will match at least the primary rooms of the home in order to make the home appear leaved in and homelike.

The primary rooms that you will want to appear ‘lived in’ are the living room, dining room, master bedroom, and all bathrooms. These are the rooms that essentially sell homes and it is important to make them appear neat, orderly, and well cared for. If you have the funds for every room in the home then by all means do so. It is a huge selling point, particularly for those who are trying to sell homes quickly. If the home doesn’t sell after the first two weeks or month (you decide the time limit) then you may want to remove the ’staging’ furniture in order to eliminate the expense. I would strongly encourage you to keep this furniture as long as the home is being shown fairly regularly though.

You will want to do so much more than simply putting furniture in the property you are trying to sell. You want to create an atmosphere or warmth and comfort. This means you want to have prints on the walls, mirrors, plants, and pillows. You do not have to purchase items particularly for this process. You can use things from your own home in order to establish this atmosphere of homelike comfort. Be sure not to use sentimental favorites or very valuable pieces, as not all people who will view the property being sold are honest. It’s a sad reality but something to consider all the same.

 
Other things that may help an empty home sell are scents. There is nothing quite like the smell of cookies in the oven or flowers in bloom to make a home feel ‘homey’. These scents can be easily accomplished with well placed scented candles, potpourri warmers, dry potpourri, fresh-cut flowers, and electric room air fresheners. There are few things that will turn off potential buyers more quickly than an overpowering fragrance however so keep this in mind when selecting the method of fragrance. Having some fragrance in the home also eliminates the problem of an empty house taking on the ‘empty house’ scent that so many do over time. In other words, this is yet another part of the staging process that works for many trying to sell homes.

The short answer to the question of whether or not staging sells real estate is “yes”. Staging a home can absolutely lead to a higher offer and a quicker sell, even in today’s sluggish market.

Applying for and shopping mortgage rates is a click away www.EversleyCapital.com

When you are first starting out with investing in houses, you should always look for ugly or bad houses that need a lot of work.  These homes are much cheaper to purchase, although they will take some work to improve.  You should start out by looking for houses that need some work, such as clean up, painting, and in some cases new carpet.  You don’t want to buy something too run down, as it could cost a fortune to repair.

If you think of yourself as a handyman and feel that you can do the repairs yourself, you can save a lot of money.  On the other hand, if you need to hire someone, you should always make sure that the individual or company that you hire is qualified to do the repairs. If you aren’t comfortable with doing any of the repairs, you should inquire about a subcontractor or company that will do it for a reasonable price, or perhaps a share of the money once you have resold the house.

If the house you are thinking to purchase and resell has any type of structural problems, you should always get an estimate from a reliable contractor before you make the purchase.  If you decide to stay in the business, you’ll learn a lot more over the years, although you should always hire a contractor when you first start out.  Once you get all of the estimates together, you can make that final decision on how much of an offer you want to put down on the property.

After you have a team together and successfully renovated and resold several homes, you’ll begin to feel quite a bit more confident with buying homes that need repairs.  All it takes is time and practice - and you’ll be buying homes that the average investor wouldn’t think twice about.  This can be a huge advantage when you are looking for homes to buy and resell, as there will be less competition to worry about.  You’ll also be able to get a lower price when buying the home, simply because you can use the cost of the repairs to your advantage.

Once you are able to do repairs on homes, including structural problems, you’ll have a huge advantage in the market.  You’ll be able to buy virtually any home, including those that other investors choose to ignore.  Doing so can be very profitable for you, especially if the house is in a well known and well desired neighborhood.  After you have done the repairs, you can resell the home for a much higher price than you paid to acquire the home.

When you start looking for houses that you can repair and resale, you should always take your time and buy the right homes.  You won’t have the money, time, experience, or support to buy the bigger houses at first, which means you won’t have any room for mistakes.  Once you have purchased and resold a few smaller homes, you’ll eventually be able to work your way up to the bigger homes - which is where the big profits will come into play.

Always keep in mind that when you first start out, you’ll need to take things slow.  You can expect profits to come overnight, as it will take you some time to learn.  Once you have been at it a few years and have several houses to your credit, you’ll be ready to tackle anything.  At that point - you’ll make a lot of money in a career that is truly exciting.