Higher Rates and More Home Sales!!!

Wonderful NEWS!!!

You may wonder how with the recent uptick in interest rates(noted also below).  The improvement in the market, even with sequestration present, pushes rates due to competition for funds.
As Jim notes in his Mortgage Matters, this is no surprise to the mortgage group.  Interes

If fact, as he notes, the low number of homes on the market will cause prices to rise upt to 8% in 2013.  The high rates will not deter the buyers.

Rather the buyers should be racing to buy...to beat further rate increases!!!

Ready to move!!!   Best take action!!!

Keeping you updated on the market! For the week of  March 18, 2013 MARKET RECAP We've been warning over the past few months that accelerating job growth would lead to higher mortgage rates. That's exactly what's occurred. Last Friday, the Commerce Department released its employment report, which showed 236,000 new jobs were created, topping most economists' estimates. The surge in job creation dropped the unemployment rate to 7.7% from 7.9%. The rate of job growth frequently reflects the rate of economic growth. When economic growth accelerates, so does the demand for loanable funds. Interest rates, in turn, rise. But they rise not only because of increased demand, they rise also because economic growth stimulates inflation – a key component in interest rates. We weren't surprised, then, to see the spike in mortgage rates – particularly in the 30-year fixed-rate loan – that occurred this past week after the release of the employment data. Many lenders are concerned that rising rates will take the steam out of the housing recovery. We are more sanguine. As long as rising interest rates are accompanied by rising job growth, the impact will be minimal. Low rates have done their job, and employment and economic growth are the most important factors to maintaining the housing recovery at this point. Rising rates will slow refinances, but we expect purchase activity to pick up the slack. More people working, and more people working at better-paying jobs, means more people will qualify for a loan. Just as important, they'll qualify for a higher-rate loan that they can still comfortably service. In short, we don't see rising rates as an impending disaster. The robust interest by investors in single-family homes will also help keep the housing market moving on a northeast trajectory. Low purchase prices and the potential for capital gains have pulled many real estate-minded investors into the market. We've mentioned in the past how large institutional investors have acquired large swaths of single-family homes. That said, most people still prefer to own than to rent. Surveys compiled by the National Association of Home Builders (as well as other groups) find that most people overwhelming want to own a home. This shouldn't come as a surprise; neighborhoods of owners tend to be more stable and better-maintained than neighborhoods of renters. We're not disparaging investors (or renters). In fact, they are doing the market a service. But over time, we expect more of these rental properties to transition to owner-occupied properties – and that's a good thing. Economic Indicator Release Date and Time Consensus Estimate Analysis Home Builder Index (March) Mon., March 18, 10:00 am, ET 47 Index Important. Improved job prospects should raise builder confidence. Housing Starts (February) Tues., March 19, 8:30 am, ET 910,000 Units (Annualized) Important. Rising starts reflect builder optimism. Rising starts are also a key component in economic growth. Mortgage Applications Wed., March 20, 7:00 am, ET None Important. Applications fell on rising rates, but rates should level out this week. Federal Reserve FOMC Meeting Wed., March 20, 2:00 pm, ET Federal Funds Rates: 0.0% to 0.25% Important. There will be no change in the Fed's low-rate bias, but their could be hints of a potential change in bias. Existing Home Sales (February) Thurs., March 21, 10:00 am, ET 5 Million Units (Annualized) Important. Volume is picking up but remains restrained by low inventory. Focus on Affordability At 2.07 million units, housing inventory is at its sixth-lowest level in 30 years, according to Capital Economics. Low inventory has helped with rising home prices. And even though prices have been rising, affordability remains high. The NAR's Housing Affordability Index measures whether or not a typical family earns enough income to qualify for a mortgage loan on a typical home based on the most recent monthly price and income data. We've read many predictions that high affordability will persist indefinitely. LPS Applied Analytics, for one, believes home values could rise an additional 35% before affordability becomes an issue. We're a little more circumspect. Bank of America recently revised its expectations for home prices, expecting prices at the national level to rise 8% in 2013. A few months ago, Bank of America was forecasting a 4.7% increase. Given rising interest in single-family homes, we don't think Bank of America's expectations are unreasonable. Home prices could very well rise 8%, but it's highly unlikely personal income will rise at the same rate. At the same time, mortgage rates will also rise with more job creation, which will make mortgages more expensive. The point we want to emphasis is that, yes, homes are still very affordable, but there is no guarantee they will remain so. In fact, it's financially risky to expect the market that exists today – in both houses and mortgages – to exist tomorrow.

How to Do It??? Check In Here!!!

A Great 'How-To' Website

Hello. I'm happy to be able to share more information with you that I think you may find interesting. Have you heard of the web site that provides step-by-step how-to information for thousands of common projects, from how to replace a leaky faucet to how to plan a dinner party? It'shttp://www.ehow.com/.

I enjoy being able to share Internet sites that I think may be useful to my clients. It's one of the ways I say that I care about you and your family. Of course, I have a whole lot more information that I can share with you. I just need to know your needs and goals. I find that the better prepared my clients are in advance of the actual purchase or sale of a home, the less anxiety they tend to experience.

Don't think you are bothering me with your questions, either. That's what I'm here for. You want someone you can trust with a decision of this size. That's why I encourage you to call or e-mail me, so that we can get to know each other.

Whatever your real estate needs, I look forward to the chance of working with you.

Bryan Cerny Bryan Cerny Rose & Womble Realty Office: 7574363636 Cell: 7575806546 Office: 7574363636 Fax: 757 390-3469 Email me at: BCerny@roseandwomble.com Visit my website at: http://BryanCerny.com

Showing Tips for Sellers

4 Tips On Basic Showing Etiquette For Sellers

Ready to sell your home??

Putting your house on the market will most definitely invite a disruption and inconvenience for your life and that of your family, as well as a multitude of varying opinions, including criticism.

You will have Realtors and their buyers show up at the wrong time. They will ask you questions you were not prepared to answer. Buyers or their children will accidentally knock over a plant or something of more value. The Realtor will accidentally let your cat out or lock the garage door that you don't have a key for.

I can attest that these things happen because my clients and I have done all of these things and other agents and their buyers have done these things and more to my listings. Although not intentional, it happens.  This can be aggravating, it WILL be aggravating.  Expect it. Plan for it. But, whatever you do... DO NOT get angry at the buyers and their agents. It just might be those buyers, with their Realtor help, that will write an offer on your home.  And, especially in this market, you can't afford to burn bridges.

Here are some basic tips for showing etiquette that will help you survive the selling process:

1) A Realtor and their buyers are late for a scheduled appointment:

THIS IS GOING TO HAPPEN! Unless the agent is several hours late without notice, or you have some kind of emergency, just grin and bear it. Agents do their best to schedule showings and sometimes we'll be early and sometimes we will be late for a multitude of reasons. For your own sanity, leave the house a half hour before the showing and plan not to come back for a half hour after the showing. Whatever you do, don't cop an attitude with the agent or buyers. You never know, they could have been caught behind a traffic accident or simply had a difficult time getting into the last home, both of which are out of their control.

2) A Realtor or their client cause damage to your property:

Accidents happen. So, if you have something of value that you don't want to risk damage to - remove it from your home and place it in storage to protect it.  Otherwise, know anything in the home is at risk. Unless the agent or buyer was grossly negligent and it caused significant damage, just let it go.

In regards to pets, it’s best to keep them in a secure location, like a crate. Assume buyers are going to want to see every room of the house before they buy it, including closets. Doors will get opened and will get left opened. So, keep your pets locked up or remove them from the house altogether.

3) A Realtor and their buyers show up without an appointment:

This doesn't happen often but, occasionally, you will have a Realtor and their buyer show up with having made a previous appointment.  Maybe the Realtor was showing in the neighborhood and drove by your home (they didn't make an appointment at your home because it didn't match certain specifications that the buyer had requested) and the buyer LOVED the looks of your home and really wanted to see it.  In this market, you can't afford to miss a potential showing to a ready and eager buyer.  Even though, it's extremely difficult, have your home ready at a moments notice at all times, if possible.

Ask the Realtor for a business card so your Realtor can get feedback from them later.  If possible, have the Realtor use your lockbox so their information is stored.  If you absolutely cannot accommodate the showing, be courteous and ask them to please, please reschedule.

4) You insist on being present during all showing:

It is always best to leave your home for a showing.  This allows the buyer to feel comfortable in really looking at every aspect of your home and it will be difficult for them to visualize themselves living in the home if you are present. 

However, if you insist on being present or you simply can't leave for a particular showing, it’s best to only speak when spoken to. If you are asked questions, be direct with your answers and certainly be courteous.  If you have nothing to say that will help sell the house, say nothing. Don't follow a buyer around your home, allow the Realtor to take them through.  A buyer needs to feel like they can speak candidly about your home.  Don't be offended if you hear something negative... remember how many homes you saw prior to finding the right one.

Bottom line... it is not easy opening your doors and letting people into your home but, if you can prepare yourself ahead of time with these tips, it will make it a bit less painful.

These notes are from Linda Secrist, Holladay, UT, Prudential Utah Real Estate.   Having shared these tips with sellers, I must share these thoughts.   I know it may not be what every seller would want to hear but it is reality.

Regardless of the field of knowledge, we always look to an expert to provide us the advice and direction to be successful.  Just look at how many of us watch HGTV, Doctor Oz and go to Personal Trainers besides seeking the best lawyers, doctors and dentists that we can find.

In the same way, in buying or selling real estate, one needs the expertise of someone who can guide him/her through the intricacies and complications of a real state transation while have his/her very best interest in mind.

Yet....

                             How to Choose A Realtor???

Key Questions to ask is Selling Your Property:

1.      Are you a Realtor?  If so, tell me what value it brings to me.

2.      What percentage of your potential commission will go to advertising my property?   What sources of advertising do you use and why?

3.       Where does your company rank among the Real Estate Companies in

   Southside Hampton Roads?

4.      What services does your company provide that differentiates it from your competition?

5.      How many offices and agents are associated with your firm? What advantage is that to me?

6.      Describe your Buyer Pool?  How will that impact the sale of my house?

7.      What Relocation assistance can you provide?

8.      What assistance can you provide in me preparing my house to sell?

9.      What specific experience do you have selling in this neighborhood?

10.  How do you:

1)      Ensure I don’t move until I’m ready to move? 

2)      Ensure only qualified buyers see my house?

3)      Ensure the potential buyer has solid financing?

11.  How does the Standard Purchase Agreement work in my favor?

12.  Where do you rank in your company in sales and listings?  In Hampton Roads?

13.   How many years have you been a Realtor?  Number of Circle of Excellence Awards or other awards?

14.   Do you have letters of recommendation that you can provide?

Questions to Ask???

THINKING ABOUT BUYING OR SELLING A HOME???

You should be!   Prices are sharp and rates still remain awesome!!

But should you not have a friend that can refer you to a great Realtor.....or you just simply want to know what that Realtor is about, here are some key questions to ask!!!

Questions to Ask

         1.      Are you a Realtor?  If so, tell me what value 

           it brings to me.

2.      What percentage of your potential commission

     will go to advertising my property?   What  

     sources of advertising do you use and why?

3.       Where does your company rank among the

     Real Estate Companies in " YOUR AREA,

     CITY OR STATE"?

4.      What services does your company provide 

     that differentiates it from your competition?

5.      How many offices and agents are associate 

    with your firm? What advantage is that to me?

6.      Describe your Buyer Pool?  How will that

     impact the sale of my house?

7.  How do you ensure I get the best deal on my

     new house?

8.      What Relocation assistance can you provide?

9.      What assistance can you provide in me 

     preparing my house to sell?

10. How will I be assured that I am notified on a

      newly listed home??

11.      What specific experience do you have selling

       in this neighborhood?

12.       How do you:

1)      Ensure I don’t move until I’m ready to 

     move? 

2)      Ensure only qualified buyers see my house?

3)      Ensure the potential buyer has solid

     financing?

13.  How does the Standard Purchase Agreement

     work in my favor?

14.  Where do you rank in your company in sales

      and listings?  In "Your Area"?

15.  How many years have you been a Realtor? 

      Number of Circle of Excellence Awards or 

      other awards?

16. What training do you have that will help me

       specifically??

17.   Do you have letters of recommendation

       that you can provide?

Any real estate agent should welcome the chance to answer these questions.   I know I will answer these for any one in Hampton Roads!!!

Prepared for the Millennials(Generation Y) Assault on Real Estate??

Perhaps you have heard of the Millennials(individuals born between '80 & '95).  Maybe you raised two or three of them!

Yet 74 million strong, they rival their Baby Boomer parents/grandparents as the largest home-buying consumer "class" of all time.  

If one of these 74 million Millennials is the buyer, how will they find your home?  I assure you it won't be in the paper!   But they are an inquistive bunch as they have found that they can "Google" anything and can "Facebook" to learn about anyone, so they will love to come to your open house.

Many of the Millennials will be your 1st Time Home Buyer or look to move up to their second home(Very Mobile!).

So be sure you have a Realtor who will reply to a text question or email(if they bother with it) quickly...or they will move on to the next house...instant answers and high service are required by these buyers!  But beware "assuming" one buyer of this age group is like another!!   You'll suffer for it if you do!

Ensure there are lots of photos and/or tour and/or video of the home. Seeing is believing...if I can't see it, I don't believe.

So be smart, list your house with a Realtor that is tech savvy...if he or she says they are it will be very apparent...just "Google" them today!
If he/she isn't there with their website or their listed homes don't come up immediately, you will know!

And yes, that is how this group of home buyers/sellers could find their Realtor to sell a home they now own..but they are onto Facebook, LinkedIn and beyond to get "comfortable" with who this Realtor is!!

They are a savvy group!!   A wonder and a pleasure to work with!!!!

How to get Ready to Sell Today??

Whether you have a lovely upscaled home   

Or if your home is not quite the prettiest in town

                                  







You make the difference!!! 

    Look at your house like the BUYER looks at the house:
         
                          What is most attractive about the house?
                          What is least attractive about the house?
                          What major repairs are needed?
                          What minor repairs?
                          What needs to be painted?
                          Does the house look sharp from the street(Great Curb Appeal???)
                          What would your mother-in-law say about the tidiness/general upkeep of the house?

These are great starting questions.   You want to accent the most attractive and make those least attractive part s of the house shine the best they can....might mean taking out furniture or repainting a room or may
be part of the major or minor repairs.

Struggle with looking at your home objectively????  Professional Stagers and Realtors are excellent resources to help you prepare your house for sale.

           It today's market it is essential to put your best foot forward to each and every buyer.

                            Now is the time to get ready!!!   The selling season has begun!!