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Why Should First Time Home Buyers Act Now?

by Galand Haas

Good Monday Morning!

One thing that you can depend on is that the Real Estate Market that you see today is most likely not going to be the same one that you see a month from now and so on.  The environment for first time home buyers has been the exception as of late, but it is most likely due for a change.  The following is an article from Realty Times that explains why first time home buyers need to act now!

With some of life's milestones, there may not be a picture-perfect time to take the plunge. But when it comes to buying your first home, the combination of good market conditions and your own financial situation can dictate timing. If you've got the credit and down payment, you'd be crazy not to buy now. Want to know why?

Rates are still low

The Federal Reserve was expected to raise rates this summer, but so far they have stayed put. There is still talk that rates could go up before the end of 2015. So what does that mean for buyers? Well, if you're a millennial, a rise in interest rates could spell bad news.

"If mortgage rates hit 6%, a third of millennials (people younger than 35 years old) wouldn't be able to afford homes as they're currently listed, according to an analysis by HouseCanary, a housing-data analytics company," said Money magazine. "Mortgages are huge loans, so a seemingly small shift in interest rates can change a borrower's monthly payment by hundreds of dollars (though going from the current 4.08% rate to 6% is in no way a small shift)."

Investopedia's example using a $215,000 home with 20 percent down (leaving a $172,000, 30-year mortgage) figures a monthly payment of $821.15 at an interest rate of four percent and $923.33 at five percent. Is that $100 a month enough to get you moving?

New low down payment loans

First-time buyers have typically gravitated toward FHA loans for their low credit score requirements and down payments of just three and one-half percent. But new loans from Fannie Mae require as little as three percent. Known as the 97% LTV (Loan To Value) loan or Conventional 97, it can be more affordable for first-time buyers because "the Conventional 97 program does not require an upfront mortgage insurance premium, and because its annual mortgage insurance rates are cheaper, too," said The Mortgage Reports.

Rising rents

In many market, home prices are up significantly from their lowest levels several years ago, but are still within range of many buyers. Rents, on the other hand, continue to go up, pushing household spending to new, uncomfortable, heights.

"Payments on a mortgage used to purchase a three-bedroom home were more affordable than paying rent on a similar home in 66 percent of the counties recently analyzed by RealtyTrac," said Mortgage News Daily. "Across all 285 counties analyzed, the average percentage of median household income needed to rent was 29.96 percent while the average percentage of median household income needed to buy was 29.00 percent."

Tax deductions

When you pay rent, the entirety of your payment goes to the landlord or property owner, and all you get in return is a temporary place to stay. When you own your home, the government essentially pays you money back for your investment.

"Your biggest tax break is reflected in the house payment you make each month since, for most homeowners, the bulk of that check goes toward interest," said Bankrate. "And all that interest is deductible, unless your loan is more than $1 million."

Any points you paid on your loan are also deductible the year you paid them, as are your property taxes. "These taxes will be an annual deduction as long as you own your home," said Bankrate. "But if this is your first tax year in your house, dig out the settlement sheet you got at closing to find additional tax payment data. When the property was transferred from the seller to you, the year's tax payments were divided so that each of you paid the taxes for that portion of the tax year during which you owned  the home. Your share of these taxes is fully deductible."

Lower PMI

First-time homebuyers who put less than 20 percent down on an FHA loan will have to pay Private Mortgage Insurance (PMI). It's one of the drags of having limited cash. For the past several years, those payments have cost buyers an annual premium of 1.35% of the loan balance, but a recent change dropped the premium to 0.85%.

"This change is expected to save more than 2 million FHA homeowners about $900 a year and allow about 250,000 consumers to buy their first homes in the next three years," said Credit.com.

Remember also that your PMI may also be tax deductible, subject to a few restrictions (and remind yourself again what portion of your rent is deductible: none).

Have An Awesome Week!

THIS MONTHS HOT HOME LISTING!



2685 Valley Forge Dr

Price: $524,900    Beds: 3    Baths: 2    ½ Baths: 1    Sq Ft: 2302

Anslow & DeGeneault 2015 Tour of Homes model home. Gas forced air 92% efficiency, exquisite single level, located in beautiful Hawthorne Estates. Easily entertain in Great Rm overlooking backyard. Escape to luxurious owner’s ste w/ tray ceilin...
View this property >>


AND HERE'S YOUR MONDAY MORNING COFFEE!!

RMLS Market Activity for August 2015

by Galand Haas

Good Monday Morning!

The numbers are in and for August 2015 the Eugene and Springfield area Real Estate market slowed slightly, but overall sales were good.  Here is what took place last month!

August Residential Highlights

August brought slightly cooler real estate activity to Lane County, but numbers remain ahead for the year overall. Pending sales (511) rose 20.8% ahead of the 423 offers accepted in August 2014, although 2.5% cooler than the 524 offers accepted last month in July 2015. Closed sales (451) fared similarly, besting last August’s 360 closings by 25.3% but cooling 16.8% from July 2015. New listings (615) were 7.0% ahead of the 575 new listings posted in August 2014, but 4.9% lower than the 647 new listings offered last month in July 2015.

Total market time decreased by one day in August to 79 days, and inventory increased to 3.2 months.

Year to Date Summary

Activity was up during the first eight months of this year compared to the same period last year. Pending sales (3,665) were up 30.0%, closed sales (3,189) were up 29.1%, and new listings (4,889) were up 9.7% this year compared to the first eight months of 2014.

Average and Median Sale Prices

Comparing 2015 to 2014 through August of each year, the average sale price rose 3.3% from $236,300 to $244,100. In the same comparison, the median sale price rose 4.0% from $211,500 to $220,000.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!



755 Horn Lane

Price: $274,000     Beds: 4     Baths: 2     Sq Ft: 1868

Tranquil & spacious property! Beautifully landscaped 0.41 acre lot provides seclusion & great entertaining spaces. Remodeled home offers updated kitchen & baths, large living rm w/ gas fp, formal dining, large windows+skylight. Private master ste w/...
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AND HERE'S YOUR MONDAY MORNING COFFEE!!

Market Activity for September 2015

by Galand Haas

Good Monday Morning!

Nationally, home sales are remaining strong and mortgage interest rates are holding steady and have actually declined slightly.  Locally, here in the Eugene and Springfield area the market remains strong as well.  This is especially true in the price ranges under $400,000.  Inventories of homes for sale also remain low in many price ranges and areas.  If you think that it is not the right time of year to sell your home, think again.  With a strong market and strong demand from home buyers, this market is still very attractive for being able to sell your home at a good value.  As long as we have these attractive mortgage interest rates and a low inventory of homes for buyers to choose from, it will remain a sellers market.  

If you are considering a home sale, don't wait until Spring.  The best opportunity for a sale just might be right now.  Please contact me if you are wanting to get an idea of what your home is worth on today's market.  Just a 20 minute visit to your home will give you all of the information that you need.

 

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!



114 Hayden Bridge Way

Price: $249,900     Beds: 3     Baths: 2     Sq Ft: 1451

Pride of ownership shows. Over 1/4 of an acre offers oversize attached garage, detached garage/shop with workbench, long wide drive with room for RV parking, large fenced backyard with covered patio, plus timed sprinkler system. Great room with fire...
View this property >>


AND HERE'S YOUR MONDAY MORNING COFFEE!!

Home Staging Tricks That Will Help You Get Top Dollar for Your Home

by Galand Haas

Good Morning!

One of the key parts of selling a home and getting top dollar for it is to have it look appealing to would be home buyers.  Home staging has been a trick that has worked well for me as a listing agent for years.  If you are considering selling your home, here a some ideas that will help you get top dollar in any market. This is an article from "Realty Times".

Getting ready to sell your home? It would be awesome to hire a home stager.

Home stagers are paid to furnish a home and help it look its best. What they create isn't so much the ideal living environment but rather the idealized one—one in which there are no awkward furniture arrangements, toys on the floor, crumbs on the countertops, or surprises in the toilet. It's not maintainable for most people everyday, but boy does it work when selling your home.

Stagers typically have furniture and accessories at their disposal—not to mention interior design degrees. But they can cost hundreds—even thousands—of dollars. Fortunately, you can achieve great results by using some of their tricks.

Clear it out and clean it up

The first step in preparing any home for sale is to clear it out and clean it up, getting rid of clutter and personal items and scrubbing it down.

"De-cluttering -- and having a pristine home from top to bottom -- are the no-brainers that can make your real estate look better than the house down the block," said Better Homes and Gardens. "Your home must be cleaner and less cluttered than it's ever been. You need to banish not just the day-to-day buildup (the mail, the shoes, last season's clothes, the dog hair), but also several years' accumulation."

Removing kids' toys, outdated furnishings, and excessive knickknacks can help. Whatever you can't sell or donate, box up and store at a friend or relative's house, or rent a storage unit for a couple of months. Or, if you can do so neatly and without compromising your garage space, stack them along a wall.

Depersonalize

A house that reflects your personal style from floor to ceiling and all over the walls (and every other surface) will have a hard time appealing to buyers.

"Prospective buyers won't be able to picture themselves in the house if they're surrounded by dozens of photos of your children and grandparents," said Bankrate.

Update the bathroom

Not everyone has the funds for a big bathroom renovation prior to selling. Smart changes can make a big difference.

"Avoid dated tile by painting. Bathrooms sell houses, but dated tile in a bathroom doesn't. A low-cost alternative to replacing the tile is to use paint," said HGTV. "First coat the tiles with a high-adhesion primer.

Next, brush on a special ceramic epoxy covering. For a fraction of the cost of new tile, you will have an up-to-date bathroom that brings in big bucks."

Pay attention to design details

After you've cleared away the clutter, you want to focus on creating simple, elegant designs. It's easier than it seems.

"For a visual impact on a table without a lot of fuss, remember a design basic: Groupings of odd numbers always do the trick! Three of a kind, like…hurricane jars, filled with something as simple as pinecones, makes a ridiculously easy and dynamic table scape," said Katie Jane Interiors.

Up your curb appeal

Make sure you make a great first impression, or you might not have an opportunity to make a second impression.

"You may have spent hours making sure the kitchen is clean, and doing so is worth the effort," sad Bob Vila. "But remember, the facade is the first part of your house a potential buyer will see. A little landscaping can go a long way. Strapped for time? Potted plants placed around the front door will add welcome charm to your entryway."

Pay attention to odors

We get used to our environment, so we might notice that musty smell or cat box aroma. Have your realtor or a trusted friend do a walk through and give you an honest assessment—not just of the way the house looks, but how it smells. Then take action to improve it. Start by steam cleaning the carpets and any upholstered pieces that need it.

Don't ignore the windows

Windows that are cloaked by outdated or heavy window coverings can negatively impact the image your home projects. Open the blinds and replace drapes with inexpensive versions that will let the light in and frame the views.

"Need to dress up a window but don't want to shell out big bucks for window treatments? Here's a trick: Use place mats," said HGTV. "First, apply a hook-and-loop fastener to the place mats and attach them in a row to a basic curtain rod. Now that the place mats are attached to the curtain rods, pin them together at the bottom, and you'll have a stylish valance that costs about $12."

Upgrade the Furniture

Giving your home a fresh, clean look with new furniture can make it feel more modern and appeal to more buyers. Don't have money for new stuff? "Try giving worn-out pieces a pick-me-up with new pillows or a slipcover," said Bob Vila.

While you're at it, take a look at your furniture layout too. "Your preferred setup may not be the most appealing one to would-be buyers. Where logical, opt for a social layout that makes it easy to envision the space being enjoyed among family and friends."

Give rooms a single purpose

That home office that doubles as a guest room is useful, but when it comes time to sell your home, pick one and run with it. "Potential buyers are confused by extra rooms that have a mishmash of uses," said HGTV.

Have An Awesome Week!

THIS WEEKS HOT HOME LISTING!



114 Hayden Bridge Way

Price: $259,900     Beds: 3     Baths: 2     Sq Ft: 1451

Pride of ownership shows. Over 1/4 of an acre offers oversize attached garage, detached garage/shop with workbench, long wide drive with room for RV parking, large fenced backyard with covered patio, plus timed sprinkler system. Great room with fire...
View this property >>


AND HERE'S YOUR MONDAY MORNING COFFEE!!

Displaying blog entries 1-4 of 4

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Photo of Galand Haas Team  Real Estate
Galand Haas Team
Keller Williams Realty Eugene and Springfield
2644 Suzanne Way
Eugene OR 97408
Direct: (541) 349-2620
Fax: 541-687-6411

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