The time is right to buy a home, however...

I got a reminder note from Curt Smith over at Bell Mortgage today and I thought it was important to share!
by +Sarah Marrinan - Keller Williams Premier Realty 

Just in case it's slipped past you, mortgage rates have been on a pretty fast climb the past 2 ½ weeks and we’ve seen the conventional 30 year fixed move from about 3.375% to 3.875% over that time.  FHA has gone from 3.25% to 3.50%.  Attached is an article from Bloomberg today that discusses some of the reasons. I don’t recall in recent memory a climb in rates this fast or steep so I just wanted to make you all aware so that you can make your clients aware.  Hopefully things will start swinging back the other way! Please let me know if you have questions or if I can be of assistance to your clients.  Thanks!Curt Smith

Please reach out if you need help finding a home or refinancing while interest rates are still at all time lows! We do not have a crystal ball or a time machine but one thing is for certain, these government subsidized low rates can't last forever.

You are going to LOVE your home! PROJECT #8: Swap Out Your Windows

And we are on to PROJECT #8!

by +Sarah Marrinan - Keller Williams Premier Realty 

Swap out the old windows for dual-paned.
Switching out your old single paned windows for new dual-paned ones might make your home look better and it will definitely make your home operate more efficiently – and more comfortable. Dual-paned windows minimize heat-loss in the winter and keep the cool air in, in the summer, so you’re not trying to heat up and cool down the whole outdoors through the leaks in your windows. They’re also a must if you have street noise or other noise challenges around your home; the extra insulation traps noise before it can get to you, inside your home.

As with everything, costs vary by location and by the quality of window you choose, but you can use $200-300/window, installed, as a rough rule of thumb. Some older homes can require wood repair of rotted out window frames, in the course of switching to dual-paned, which can increase the project cost significantly. Also, many cities and states offer rebates for installing dual paned windows (and making other energy-efficient upgrades, by the by), which can dramatically defray the costs of this particular remodeling project. This is one of those $10K-ish projects that actually can pay for itself over time.


**Looking for tips on getting your home ready to sell?  Call me at 651-964-0289 for a personal consultation!
Sarah

Wall Street Home Resale Fees A.K.A. Private Transfer Fees

Home buyers and sellers should be aware of a legal instrument, called Wall Street Home Resale Fees (also known as Private Transfer Fees).

Municipalities have long used similar fees, called transfer taxes, to raise revenues or recoup public subsidies for private development projects, but private transfer fees are relatively new.

Private Transfer Fees are for-profit covenants that require homeowners to pay a premium for the right to sell their property.  These fees are typically placed on properties by developers and often go unnoticed by unsuspecting homebuyers.

Private Transfer Fees are inserted into home sale contracts by private third parties, and require that every time a home is sold for the next 99 years, a percentage of the sale of the home (usually 1%) be paid to the third party.  In return, homeowners receive nothing but reduced home equity and a harder time selling their home.

Traditional covenants have an accepted and beneficial role in the housing market by benefitting the land. Resale fees levied by homeowners' and condo associations direct money back towards homeowners in the form of infrastructure and amenity improvements. 
This is what differentiates them from the private, for-profit transfer fee.

So you are probably wondering why our regulating government would let such a thing happen. Well, rest assured it's being faught. Check out all the states with laws against it, including Minnesota!
http://stophomeresalefees.org/state-laws-against-wall-street-home-resale-fees

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You're going to LOVE your home! PROJECT #7: Update Your Bathroom(s)!

by +Sarah Marrinan - Keller Williams Premier Realty 

According to Wiki Answers we spend A LOT of time in the bathroom...

• 15 min per day (hygiene)
• 15 min per day (facilities)
• 30 min per day total
• 210 min per week
• 10920 min per year // 182 hrs // 7.58 days
• A person lives to be 75 yrs old // 819000 mins// 13650 weeks// 568.75 days // A year and 1/2
• 15 min per day (hygiene)
• 15 min per day (facilities)
• 30 min per day total
• 210 min per week
• 10920 min per year // 182 hrs // 7.58 days
• A person lives to be 75 yrs old // 819000 mins// 13650 weeks// 568.75 days // A year and 1/2

...so it's only natural this room makes the list!

Project # 7. Bring a bathroom up to date!

There are dozens of things you can do to your bathrooms to bring them into the 21st century for well under the $10,000 mark. For example, replacing that 1960's pink tub for a Jacuzzi tub -a commonly listed "upgrade" on houses for sale - might run somewhere between $1500 and $3500.

Maybe heated tile flooring is your dream. Depending on the size of the room and existing wiring, this could easily be under $1,000.

If you’re committed and smart, you can group a number of projects like these into a bathroom that feels like new for maybe just $1,000 or so!

• Replace the vanity with a new wood model that has a stone counter.
• Add a new mirror and faucet. Alternatively, keep your current vanity but replace your toilet and faucet and add a new vinyl floor.
• Improve lighting and ventilation with a new combination light and exhaust fan. One with a heat setting will keep you from getting chilled when you get out of the shower.
• Add a set of sconces on either side of the mirror or medicine cabinet.
• Update towel bars, hooks, toothbrush and toilet paper holders, and cabinet hardware. Add matching shelves for your towels and toiletries.
• Switch your standard showerhead to one with multiple settings, including a pulsating or massage setting.
• Keep your towels toasty with a heated towel bar, some of which cost $100 or less.

(Kitchen lovers, think about some of these bathroom "perk ups" and apply them in the kitchen! Lighting, faucets, cabinet handles... maybe a deeper or new style sink... all great, affordable ways to love your kitchen more!)

Have you recently done any bathroom updates? I would love to see your before and after pictures if you are willing to share them with me!

**Looking for tips on getting your home ready to sell?  Call me for a personal consultation!
Sarah
Follow Me on Twitter!  See more home projects here.
Check out 10 things that may Negatively affect your Home's Value

The "Hidden Costs" of Purchasing Bank-Owned Properties

Potential Extra Upfront Costs Associated in Buying a Foreclosed Home

There are costs associated with any home you will purchase but bank-owned/corporate-owned/REO homes tend to have extra costs that aren't always recognized upfront by the buyer. In fact, there are so many things to consider with these properties, I will only cover a few here and discuss further in additional posts so let's get right to it.

•Utilities Costs
Because foreclosures have often been winterized and the utilities are shut off, the buyer is often the one incurring the expense to have them turned back on and assume operational costs prior to closing for the purpose of inspection and appraisal.  If the property is being purchased using financing, the appraiser will require the utilities to be on. If they are not, the buyer will likely have to pay for re-inspection by the appraiser once all utilities are activated. Not only is this an expense, dealing with utilities for a home you don't own can be time-consuming and confusing.

•Inspection Costs
Most bank-owned properties are sold "as-is" and of course with no disclosures so often owner-occupant buyer's want a more thorough home inspection done and sometime these come at a higher cost.  Inspectors often encounter problems you will want to have looked at by a professional prior to purchase. All this must be done in what is usually a VERY short time frame after your offer is accepted so have your "team" of inspectors and tradesmen on speed dial if you are considering buying a foreclosure.

Other Real Estate Expenses
Title companies, lenders and real estate companies all have their own fees. Some sellers help buyers cover these expenses.  In the case of buying a lender-owned home, it's often a different approach than owner occupant sellers.  For example, the lender owner may offer to pay your title insurance if you use their title company but they may be offering a lower buyer's broker compensation than what your representation agreement states leaving you to pay the difference to your brokerage.

   Because I try to keep all my posts to a "less than 5 minute read" I'll stop there and pick up with another post about things to consider when buying a foreclosure.  In the end, knowing what to expect and having a good agent to walk you through it are necessary when considering buying a REO property.

Please search this blog for posts labeled Foreclosure Headaches for more things to consider when looking at unoccupied homes.