Real Estate Information Archive

People who are thinking of putting their home on the market often ponder completing some home improvement projects beforehand. When choosing the right projects to complete, Realtor® magazine recommends exterior improvements over interior ones, because these greatly increase the curb appeal of a home.

Unless a home looks well maintained on the outside, potential buyers are unlikely to want to see the inside. As a result, improving curb appeal will not only help a home sell faster, but will increase the amount of money a property is able to fetch as well.

Some improvements tend to provide a greater return on investment than others do. At the top of projects listed by Realtor® magazine is adding a new steel entry door. This not only gives the front of the home a new look, but also provides a sense of security for new buyers. It is also one of the least expensive repairs to complete, and will provide an estimated 85.6% return on investment.

Siding replacement is one of the more expensive improvements, but it also provides a lucrative ROI.  Most homeowners can expect to recoup around 79.3 percent of the investment they make in new siding. These figures are for new fiber cement siding, but consumers could expect similar results when choosing vinyl, aluminum, or wood siding as well.

Adding a new deck is one way to make sure a home stands out from similar properties.  The addition of a deck will provide anywhere from a 77 to 85 percent return on investment. According to MSN, a deck appeals to potential buyers because they perceive it to be additional living space. Homeowners benefit because adding a deck costs less than a room addition costs. In order to realize the greatest benefit, How Stuff Works recommends a 16 by 20 foot deck made from pressure treated lumber.

Garage door replacement and window replacement are also top improvements to consider. Both of these help to improve a home’s appearance, thereby attracting potential buyers. Buyers are often encouraged by the fact that these improvements help increase a home’s energy efficiency.

When getting property ready to sell, homeowners can’t go wrong when they make some of these exterior home improvements. Doing so could mean the difference between a house that sells quickly over one that remains on the market for several months.

In a recent article printed by the Associated Press, statistics showed that home sales on new homes hit a five-year high during the month of May. The Department of Commerce tracks these figures, and claims that May saw a 2.1 percent increase when compared to statistics for April. This was an incredible 29 percent increase over the same month only one year ago.

The seasonally adjusted numbers showed annual sales of around 476,000 homes. This is the highest number since July 2008. Although there was an increase, the number is still below what economists consider healthy for the economy. Nonetheless, this means that the housing market may finally be on the upswing.

CNN reports that the S & P/Case-Shiller Home Price Indices improved by 12.1% in April. The S & P Indices are the leading method of measuring residential real estate prices in the United States. National figures as well as those from 20 different metropolitan regions are compiled when making these calculations. As such, an increase here serves as proof that housing prices are indeed continuing to increase.

The fact that home prices are increasing along with mortgage rates that have slightly increased could have spurred a number of buyers into action. Many who had been waiting for the so-called “right time” to buy have realized that they had better act soon in order to snatch up prime real estate with historically low-monthly payments attached.

Buyers also seem encouraged by the fact that foreclosures are down over one year ago. This is giving consumers peace of mind because they do not have to worry about whether or not the previous owners took good care of an available property. New home construction is also up, which means that potential homeowners also realize they have more choices than they would have had only a few short months ago.

The fact that home sales are up also means that more and more people are finding themselves able to qualify for a mortgage loan. Right now is still an excellent time to invest in real estate, so those who have been putting off doing so should contact a Realtor® soon to discuss their options.

Buying a home can be a time of both anxiety and excitement. Home buyers that know about the terminology associated with home ownership have a better chance of fending off some of that anxiety. Pre-approval and pre-qualification are two of the most confusing terms when buying a home. Knowing the difference between pre-approval vs. pre-qualified allows buyers to understand what their agreement with the financial institution is, as well as what kind of house they can afford.

Pre-qualification

This step simply involves looking at the buyer's finances and estimating how much they can afford to spend on a house. Items like income, assets, down payment, and debts are taken into consideration. There is no commitment involved with a pre-qualification. The buyers are not obligated to purchase a home, and the financial institution is not obligated to give the buyers a loan. Pre-qualification does not include an in-depth look at the buyer's finances or an evaluation of their credit report. It simply lets the buyers know if home ownership is an option and the range of prices they can look at. Pre-qualification is a relatively short process and there is usually no cost to the buyer.

Pre-approval

When trying to look ahead at your loan options, pre-approval takes pre-qualification a step further. In this step, the lender does an extensive evaluation of the buyer's financial history, including their credit report. Instead of just telling the lender what their income, assets, and debts are, buyers are required to provide some documentation. Payroll records, bank statements, and other records are often required to proceed with a pre-approval. A pre-approval usually includes an application fee and is a tentative agreement from a lender stating that the buyer will be given mortgage financing. It is important to understand that a pre-approval is not a mortgage guarantee. A mortgage application is only guaranteed after a title search, appraisal, and other financial verifications are established. Since the pre-approval already takes many financial situations into consideration, the pre-approval status is very attractive to sellers. In situations where multiple offers are presented, buyers with pre-approval will often get selected over buyers that haven't established financing.

There are advantages to completing both of these steps, and it is important to remember that buyers always have the option of choosing a different lender. Just because one lender performed a pre-qualification does not mean that the buyer has to continue with that lender for the pre-approval and mortgage. Shopping around sometimes reveals better interest rates or a lender that better represents the buyer's wishes and communication style.

It is also important to note that the terms pre-approval and pre-qualification sometimes get interchanged by either lenders or other real estate professionals. Knowing the difference between pre-approval vs. pre-qualified can help buyers take control of their home ownership situation.

The housing market is showing more signs of recovery according to recent reports. This publication reports that home prices hit their highest point in seven years, increasing more than 12.2% in May over the same month in 2012. The jump was the biggest one in more than seven years, suggesting that the housing market bubble may have finally burst.

CoreLogic, a provider of real estate data, reported that home prices increased in 48 states in May. The only states to see a decline in home prices were Alabama and Delaware. In addition, 97 out of the top 100 cities in America also reported an increase in home prices.

Western states showed substantial gains when compared to the rest of the nation. The state with the highest gains was Nevada, which saw a 26 percent increase. California followed with a 20.2 percent increase; Arizona, 16.9 percent; Hawaii, 16.1 percent; and Oregon, 15.5 percent.

May 2013 was also the 15^th consecutive month in which home values improved. The increase between April and May amounted to a 2.6 percent increase. Even so, home prices are still around 20% lower than they were at their peak in April 2006.

The increase in home prices is largely due to the fact that there have been more buyers in recent months.  Encouraged by unusually low interest rates, many people have decided not to put off purchasing real estate any longer.  That fact, coupled with a fewer number of foreclosures on the market, has caused home prices to increase again.

Not only are more houses selling, but fewer of them fall into the category of “distressed homes” than in the recent past.  Distressed homes are those that have previously been affected by foreclosure or a short sale, which involves selling a home for less than the amount owed on a mortgage. This is good news for consumers who might have concerns about purchasing a home, but did not want to contend with the potential problems a distressed property might bring.

Over the next few months, experts anticipate another increase in home sales, since a record number of real estate purchase contracts were signed in June. Now is an excellent time to invest in real estate, so those who have been putting it off may want to go ahead and contact The Rob Levy Team and jump on this opportunity.