Time to buy a Home

Mortgage rates have dropped dramatically this week.  According to the article in Yahoo Finance The benchmark 30-year, fixed-rate mortgage fell 11 basis points to 6.31 percent, according to the Bankrate.com national survey of large lenders.  This shows a downward trend in fixed mortgage rates.  A year ago the index was 6.32. 

What does this mean to us in Danville, CA?  The perception is that mortgage rates are going up do to the fact that many home owners have what is called an option arm or a variable rate mortgage.  These mortgages are tied to variable indexes that have been going up.  However, the fixed rates are actually stabilizing or even going down.

The real estate “bubble” that consumers have feared is in fact overly exaggerated.  Sure home prices have leveled off, but that’s a good thing for the economy along with affordable mortgage rates.  No one wins if the people buying the home can’t even afford the payments.  We at Legends Realty see that demand here in Danville CA is rising again.  We’re even starting to see more multiple offers in our real estate office.  This will cause prices to start to rise once again.

 30-year fixed
This week’s rate: 6.31%
Change from last week: -0.11
Monthly payment: $1,022.38
Change from last week: -$11.87

15-year fixed
This week’s rate: 6.08%
Change from last week: -0.11
Monthly payment: $1,399.51
Change from last week: -$9.85

5-year ARM
This week’s rate: 6.17%
Change from last week: -0.13
Monthly payment: $1,007.36
Change from last week: -$13.95

What about foreclosures?  Foreclosures are up.  Sure they are.  What do you expect when banks offer such enticing programs like 100% financing and even 110% financing for the past 5 years.  These mortgages often are only fixed for 1-3 years.  Once that time has elapsed the rate goes up, often dramatically and so does the payment.  It’s tough to pull money out of home with no equity built up.

 I’m sure we’ll be hearing more on this.

Preparing a Home for Sale

At Legends Realty in Danville CA one of the first things we will do before putting a home on the market is prepare the home for sale. We want to show the home off in its best light to maximize the earning potential. We will tour the home with the eye of a buyer – what works, what doesn’t work. We often employ a professional stager who does this for a living.  They often add art, furniture, flowers ec. to enhance the home.  Cathy Lee at C.L Design Services has done a bangup job for our team.

Curb Appeal Does the home have curb appeal? Can we give it a little more pizzazz to draw the buyer in? Would a bit of touch-up paint add dollars to the sale? What about the garden? Is the lawn in order and neatly edged? Are trees and bushes neatly pruned? Are flowers in bloom? If not, it may be time for a garden upgrade. Adding colorful annuals to the front garden will make a big difference. Remember, creating curb appeal will add dollars to your home’s final selling price. Welcome Home As we walk in the door of the home, we will ask myself, “Will this home say, ‘Welcome home’ to a buyer?” Looking through the eyes of a buyer, we will recommend changes that will enhance sales appeal. We’ll help you eliminate anything that gives the appearance of clutter. Countertops should be free and clear. Knickknacks, souvenirs, family photos, refrigerator artwork – it’s gone. We need to “de-personalize” the home so buyers can imagine it as their home. Closets and cupboards should appear large and roomy. It’s time to make a donation to a local charity or store belongings at a friend’s or family member’s home. Reviewing the home room-by-room, we will make recommendations that impact the sale. we’ll point out the pieces of furniture that should be removed, rooms that need new paint, carpet that needs to be changed, fixtures that need polishing, windows that need cleaning, and any other improvement that can easily be made to promote the sale. Setting the Stage Before the first buyer walks in the door, we’ll show you how to set the stage. We want to engage the buyer’s senses. Lighting is critical. We’ll draw back curtains, open blinds, change light bulbs and add lighting where needed to welcome the buyer. We’ll enhance the ambiance with music playing lightly in the background and insure a pleasing aroma emanates from every room.