After a strong 4th Quarter in 2013, this year started with a fizzle. Most of this can be attributed to the frigidly cold winter that hit the entire Northeast. Starting in March the housing market started to pick up steam and never slowed down. Existing-home sales have risen for 5 straight months and in July hit the highest pace of the year.
Jobs are always important for home sales, and over the past year we have seen jobs grow by over 2.6 million. Even with a strong economy that is producing many new jobs the interest rates refuse to increase.
The inventory shortage is also improving, inventory hit a 2-year high in the month of July. Most buyers like to view between 12-15 homes on average before they choose "the one." The increase in homes on the market allows todays buyers to find more of the options they are looking for during their search. What's even better, all-cash investors are stepping back, which allows the first-time home buyer a better chance of getting into the market.
The bottom of the market has much less of a strangle hold on our area. Distressed property sales (REO and short sales) are at their lowest point since 2008. The national average of distressed sales this July was 9%, down from 15% the same time last year. Also, the taxpayer funds used to bailout Fannie Mae and Freddie Mac have been fully paid back.
The housing market is steadily improving, and the growth potential remains strong thanks to pent-up-demand. For all of the reasons stated above the NAR (National association on Realtors) predicts growth in four of the next five years nationally. The one down year simply reflects the fact that data never moves in a straight line in any direction.
Chris Lawlor
Coldwell Banker Heritage
610-250-8880
CLawlor@cbheritage.com
Monday, September 22, 2014
Monday, June 2, 2014
What is my home worth?
As a realtor, I have realized everyone has the same question for me. What is my home worth? Understanding what your home is worth can help you decide whether or not to sell, how to price your property, and whether your property is holding its value.
When trying to get a better understanding of what your home is worth, you should first consider getting a comparative market analysis (CMA) performed by a knowledgeable, local realtor. A market analysis takes into consideration many different market factors to come up with a target range of what your home is worth. There are four main categories used when preparing a CMA.
1. Available Listings- These properties are your home's direct competition. The price of your home will not be directly determined by this category because these homes have not yet sold. Market Value is only determined by homes that have already sold in the current market (90-180 Days).
2. Pending Sales- These were previously active listings that have an accepted offer on them but have not yet closed and settled. Once again these homes will not directly determine the value of your home but they will help paint a picture of where the market is heading
3. Sold Listings- Homes that have closed in the last 3-6 months are your comparable sales. These homes are the ones an appraiser will use to determine your home's appraised value. These are the most important homes in determining the current value of your home.
4.Expired Listings-This group will reflect the highest median sales price because they did not sell and were probably unreasonably priced. Some of the expired listings could also show up as an active listing, listed by a new agent at a new price. Listings also expire because they were not aggressively marketed or because the home was in need of repairs.Call me today for a Free Market Analysis.
Chris LawlorColdwell Banker Heritage
484-560-3226
clawlor@cbheritage.com
Tuesday, March 11, 2014
First Time Home Buyers
Finding and Financing a Home Made Simple
The Financing Process
- Determine your budget and how much you can afford.
- Get pre-approved for a mortgage using a reputable local lender.
- Gather the documents you will need. (Listed in photo =>)
Deciding on a Mortgage
Differences in Fixed and Adjustable Interest Rates
- Fixed Rate Mortgage: The interest rate stays the same for the entire term of the loan.
- Adjustable Rate Mortgage: The interest rate is linked to a financial index and may fluctuate with market conditions
Types of Mortgages
- FHA- These loans are insured by the Federal Housing Administration, a government agency. The borrower pays a monthly mortgage insurance to protect the lender incase the borrower defaults. A lower down payment is required for FHA loans (only 3.5%) and borrowers can ask for as much as 6% towards their closing costs. However, the monthly mortgage insurance last for the life of the loan.
- Conventional- These loans are secured by investors, therefore not insured like FHA or guaranteed like VA. A down payment of 5% is required to secure a conventional loan. There is almost a monthly mortgage insurance with these loans, however it drops off once the borrower reaches 20% equity. Borrowers can ask for as much as 3% from the seller to assist with closing costs.
- VA- These loans are guaranteed by the US Department of Veteran Affairs. VA loans are available to active and retired Veterans and their surviving spouses (assuming they have not remarried). If you qualify VA loans allow veterans to acquire a loan with 0% down.
* There are many other options available for financing, these are the most popular choices.
Calculating Your Budget
To estimate your budget, add up your total financial worth (Money saved for purchase)and then subtract all the cost in the purchase.
Some expenses you may carry:
- Down Payment
- Mortgage Payments
- Insurance
- Taxes
The Home Search Begins
Some things your should consider when searching for homes:
Some things your should consider when searching for homes:
- Size of the property
- Type of neighborhood you desire
- Quality of School system
- Nearby transportation
- Urban or Suburban
If you want to get started searching online TODAY click the following link: Home Buyer Search
This website gives you a secure login and password to allow you to search the Multiple Listing Service. You can get directions, view maps of the area, and even set up showings through the site.
Writing the Offer
Once you have found the perfect home, I will write up the offer and ensure all paperwork and activities are completed so you can close on your property.
The Closing
This is where the transaction is finalized. I will guide you through all closing procedures to make your home officially yours.
MOVE IN!!
Sunday, March 2, 2014
Foreclosures….What you need to know
Foreclosure is a legal process in which the mortgage lender makes an attempt to recover the balance of an unpaid loan from a borrower who has stopped making payments. The lender forces the sale of the home as collateral for the loan. The major difference from a traditional home sale or even a short sale is the home-owner no longer has possession of the house. If you are thinking about buying a foreclosure in the future there are a few things you need to know.
1. Get Pre-qualified
You should always get a letter of pre-qualification before you start your home searching process. This is especially important when searching the foreclosure market. Foreclosures are a very competitive market, since so many people are looking for a bargain. When you have already been pre-quailified for the purchase price of a particular property your offer looks stronger than your competition.
2. Budget for Repairs
Most foreclosures are sold in "as-is" condition. This means the bank will not make needed repairs to the property before the sale. The bank usually prices the foreclosed home at a price that reflects the needed repairs, so there is not usually much room for negotiations. Of course, you should always attempt to get a lower price.
3. Do Your Research
Pick an area you are interested in and do research on what comparable homes are selling for. Make sure you choose homes that have recently sold in the area that are as close as possible to that property. Some things you should focus on are : # of bedrooms, # bathrooms, square feet, school district, lot size, days on the market, etc.
4. Ask for Closing Cost Assistance
Since the bank is usually unwilling to make any necessary repairs you should have your realtor ask for the bank to help with closing costs. You have a decent chance of getting some of the closing costs taken care of by the bank. This will allow you to keep more money in your pocket to make repairs after settlement of the home.
5. Get a Home-Inspection
Even if the home is being sold "as-is" make sure you have a home inspection contingency written into the agreement of sale. This protects you incase there are major repairs that were unseen during your time looking through the home.
* To receive a list of the current bank owned properties in you area contact me TODAY.*
Chris Lawlor
Realtor @ Coldwell Banker Heritage
cell: 484-560-3226
office: 610-250-8880 ext. 350
Email: clawlor31@yahoo.com
1. Get Pre-qualified
You should always get a letter of pre-qualification before you start your home searching process. This is especially important when searching the foreclosure market. Foreclosures are a very competitive market, since so many people are looking for a bargain. When you have already been pre-quailified for the purchase price of a particular property your offer looks stronger than your competition.
2. Budget for Repairs
Most foreclosures are sold in "as-is" condition. This means the bank will not make needed repairs to the property before the sale. The bank usually prices the foreclosed home at a price that reflects the needed repairs, so there is not usually much room for negotiations. Of course, you should always attempt to get a lower price.
3. Do Your Research
Pick an area you are interested in and do research on what comparable homes are selling for. Make sure you choose homes that have recently sold in the area that are as close as possible to that property. Some things you should focus on are : # of bedrooms, # bathrooms, square feet, school district, lot size, days on the market, etc.
4. Ask for Closing Cost Assistance
Since the bank is usually unwilling to make any necessary repairs you should have your realtor ask for the bank to help with closing costs. You have a decent chance of getting some of the closing costs taken care of by the bank. This will allow you to keep more money in your pocket to make repairs after settlement of the home.
5. Get a Home-Inspection
Even if the home is being sold "as-is" make sure you have a home inspection contingency written into the agreement of sale. This protects you incase there are major repairs that were unseen during your time looking through the home.
* To receive a list of the current bank owned properties in you area contact me TODAY.*
Chris Lawlor
Realtor @ Coldwell Banker Heritage
cell: 484-560-3226
office: 610-250-8880 ext. 350
Email: clawlor31@yahoo.com
Thursday, February 27, 2014
10 Ways you can change the value of your home
These days house hunters are doing almost all of their search online. The decision of whether or not to even give your home a second look depends solely on how well your home presents itself through pictures. Of course a good camera and well lit rooms are important, but here are a few things that today's buyers are looking for.
1. Update Your Kitchen
Kitchens are critical. A big kitchen with a lot of workspace is high on the must have list. Buyers tend to look for more natural materials in today's market. Hardwood or tile flooring is important, as well as granite or soap stone countertops.
Even if you do not have a huge kitchen make sure all the appliances are nice and in working condition. Make the best use of all your space with serviceable counter space and lots of storage. Next focus on lighting, a well lit area can make a big difference even if you change nothing else.
People are looking for the open concept more now then ever before. If you have the possibility of taking out a wall or making a half wall that allows for a breakfast bar, do it. Kitchens, if done economically, tend to always bring a great return on your investment.
2. Spacious Modern Bathroom
A buyer is more likely to spend some extra money on high-end finishes in Master Bathrooms. A spa like environment will attract more people to your home when it comes time to sell. The easiest way to accomplish this feeling is by adding a whirlpool tub.
Some of the other important features people are looking for is a double sink, a separate shower with steam features, and a separate room for the toilet.
*Important Note: Do not spend thousands of dollars renovating your bathrooms without making sure your hot water heater and plumbing system can handle the changes.
3. Closet Space
A great way to stand out from the competition is to have ample closet space in your home. Obviously, everyone wants a walk-in closet in their master bedroom. If your home does not have the space to build a walk-in closet make the best use of what you have. Spend a few extra dollars on one of the thousands of closet organizers out there (Check out www.easyclosets.com).
4. Good Windows
Your best bet is to replace old windows throughout your home. This can be expensive, so if money is tight make sure you find and fix any spots in your home that allow cold air in. It has been a very cold winter and buyers want to be reassured your home is going to be energy efficient.
4. Curb Appeal
After people narrow down the home search online, most like to drive by before they set up a showing. The easiest way to increase your curb appeal is to use a power washer and repaint wood trim. You should also maintain bushes and hedges on your property. Do not take down mature trees on your property unless they cause problems, these can add as much as $1000 to the value of your home. Mostly, make sure the outside of your home is tidy and presentable at all times.
6. Basements
This one is simple, make sure the basement is dry. Everyone wants a finished basement but it usually is not make or break for today's buyers. Mostly, they want to know that when the next hurricane hits they will not be pumping thousands of gallons of water out.
Some things you can do to make sure your basement is dry are as follows:
Those are some of things you can do to improve the value of your home when it comes time to sell. There are also things home owners can do that will be considered a liability to buyers.
7. Pools
Some buyers want their next home to have a pool, let them install one. Homes with pools just narrow the amount of buyer willing to consider purchasing them. The amount of money it cost to maintain a pool will scare a large amount of the available buyers away.
8. Clutter
Even if your home is the most beautiful home in the neighborhood, clutter will turn buyers off. People want to be able visualize themselves living in the home. If rooms are packed with large furniture or a ton of personal trinkets it becomes hard for them to do this.
Think about placing your stuff in storage or even in PODS. This way the home looks nicer when buyer come through at open houses and showings. In addition, having your personal items packed up already will decrease your stress when you eventually sell your home.
9. Outdated appliances or system.
Everyone wants a big screen television with a blu-ray player and surround sound in their family room these days. If your home has an outdated electrical system buyers will take you off the short list quick. Make sure you have at least 100-amp electrical service, though 200-amp is the preference in today's marketplace.
10. A long "to-do" list
Not everyone can afford to take care of all the items on this post when getting ready to sell their home. However, it is important to make sure your take care of all the little problems your home presents. A buyer does not want to walk out after seeing your home with a long list of things that need to be done. This is the easiest and most affordable way to help your bottom line when it comes time to sell.
*Give me a call when you want a better understanding of your current home's value.*
Chris Lawlor
Realtor @ Coldwell Banker Heritage
cell: 484-560-3226
office: 610-250-8880 ext. 350
Email: clawlor31@yahoo.com
1. Update Your Kitchen
Kitchens are critical. A big kitchen with a lot of workspace is high on the must have list. Buyers tend to look for more natural materials in today's market. Hardwood or tile flooring is important, as well as granite or soap stone countertops.
Even if you do not have a huge kitchen make sure all the appliances are nice and in working condition. Make the best use of all your space with serviceable counter space and lots of storage. Next focus on lighting, a well lit area can make a big difference even if you change nothing else.People are looking for the open concept more now then ever before. If you have the possibility of taking out a wall or making a half wall that allows for a breakfast bar, do it. Kitchens, if done economically, tend to always bring a great return on your investment.
2. Spacious Modern Bathroom
A buyer is more likely to spend some extra money on high-end finishes in Master Bathrooms. A spa like environment will attract more people to your home when it comes time to sell. The easiest way to accomplish this feeling is by adding a whirlpool tub.Some of the other important features people are looking for is a double sink, a separate shower with steam features, and a separate room for the toilet.
*Important Note: Do not spend thousands of dollars renovating your bathrooms without making sure your hot water heater and plumbing system can handle the changes.
A great way to stand out from the competition is to have ample closet space in your home. Obviously, everyone wants a walk-in closet in their master bedroom. If your home does not have the space to build a walk-in closet make the best use of what you have. Spend a few extra dollars on one of the thousands of closet organizers out there (Check out www.easyclosets.com).
Your best bet is to replace old windows throughout your home. This can be expensive, so if money is tight make sure you find and fix any spots in your home that allow cold air in. It has been a very cold winter and buyers want to be reassured your home is going to be energy efficient.
4. Curb Appeal
After people narrow down the home search online, most like to drive by before they set up a showing. The easiest way to increase your curb appeal is to use a power washer and repaint wood trim. You should also maintain bushes and hedges on your property. Do not take down mature trees on your property unless they cause problems, these can add as much as $1000 to the value of your home. Mostly, make sure the outside of your home is tidy and presentable at all times.6. Basements
This one is simple, make sure the basement is dry. Everyone wants a finished basement but it usually is not make or break for today's buyers. Mostly, they want to know that when the next hurricane hits they will not be pumping thousands of gallons of water out.
Some things you can do to make sure your basement is dry are as follows:
- Grade the soil around your house to make sure rain water runs away from the foundation.
- Extent the downspouts of gutters at least 4 feet away from your home.
- Do not plant any trees or large shrubs close to your house. These plant's roots are strong and will crack the walls of your foundation
- Apply a water sealer to any cracks already present inside your basements walls.
Those are some of things you can do to improve the value of your home when it comes time to sell. There are also things home owners can do that will be considered a liability to buyers.
7. Pools
Some buyers want their next home to have a pool, let them install one. Homes with pools just narrow the amount of buyer willing to consider purchasing them. The amount of money it cost to maintain a pool will scare a large amount of the available buyers away.8. Clutter
Even if your home is the most beautiful home in the neighborhood, clutter will turn buyers off. People want to be able visualize themselves living in the home. If rooms are packed with large furniture or a ton of personal trinkets it becomes hard for them to do this.
Think about placing your stuff in storage or even in PODS. This way the home looks nicer when buyer come through at open houses and showings. In addition, having your personal items packed up already will decrease your stress when you eventually sell your home.
9. Outdated appliances or system.
Everyone wants a big screen television with a blu-ray player and surround sound in their family room these days. If your home has an outdated electrical system buyers will take you off the short list quick. Make sure you have at least 100-amp electrical service, though 200-amp is the preference in today's marketplace.
10. A long "to-do" list
Not everyone can afford to take care of all the items on this post when getting ready to sell their home. However, it is important to make sure your take care of all the little problems your home presents. A buyer does not want to walk out after seeing your home with a long list of things that need to be done. This is the easiest and most affordable way to help your bottom line when it comes time to sell.
*Give me a call when you want a better understanding of your current home's value.*
Chris Lawlor
Realtor @ Coldwell Banker Heritage
cell: 484-560-3226
office: 610-250-8880 ext. 350
Email: clawlor31@yahoo.com
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