Home Staging Is It Worth It? NAR Asks Realtors What They Think.

Is staging your home before putting it on the market really worth it? 

The National Association of Realtors recently sent out a questionnaire to over 50k realtors and here is what they found out. 

Beyond staging, agents also named the most common home improvement projects they recommend to sellers: Ninety-three percent recommend decluttering the home, 89 percent recommend an entire home cleaning, and 81 percent recommend carpet cleaning. Other presale projects include depersonalizing the home, removing pets during showings and making minor repairs.

Here are some of the top takeaways.

  1. 96% say staging has an effect on buyers most of the time
  2. 49% believe it provides an increase in value from 1% to 20%
  3. 77% agree that it makes it easier for a buyer to visualize themselves in the home
  4. The living room, kitchen and master bedroom are the most important when it comes to staging
  5. Only 38% of realtors stage every home they list
  6. There is a fairly even split as to who pays for the services, the realtor or seller
  7. Finally 55% say that properly preparing the home can reduce its time on the market

©2017 National Association of REALTORS®

Buy Now / Sell Later

Buy Now Here’s How…

Wouldn’t it be nice to purchase your next home and move in THEN sell your previous home?

That is how the few who have cash do it BUT it can be done with leverage.

Your income must be sufficient to meet the debt ratio limit of having 2 house payments in addition to your other debts.

You need the minimum down payment to purchase the next home. Here are some good sources for that down payment:

   Borrowed from an existing line of credit on your current home
   Borrowed from a 401(k)
   Liquidated from an IRA (some will allow these funds to be repaid  
   within 60 days without penalty - check with them)
   Cash on hand
   Gift from a relative

Here are some benefits of buying now and selling later:

   Non-contingent contract increases your chances of getting your offer 
   No need to leave your home for showing appointments since the home 
   will be listed for sale when it is vacant
   When vacated then cleared out and cleaned up, your home has a better 
   chance of selling and can be professionally staged with 
   Pinette Realty Group's assistance
   No rush in moving - close on the new home and then perform any updates
   or remodeling before moving in
   Many more....

Should you desire to Buy Now/Sell Later, feel free to contact KC Harney w/Universal Lending at 303-799-9100 to discus your options. 

Nicole Pinette is a seasoned professional with over 20 years of experience and can help you get the home you want.  You Can Buy Now! 303-683-4837

Pinette Realty Group - Highlands Ranch, CO





Interest Rates Are Rising!

How will higher interest rates affect your buying power?  Rate Increase

Many times buyers resist this crazy market with multiple offers and rising prices. Although this is unsettling for many, the real concern should be rising interest rates. For example, if you were a buyer in the market Spring of 2016 and were considering buying a home at $400,000, but timing did not work out for some reason, that same home this Spring could be worth approximately $436,000 or approximately a 9% appreciation. Granted this is a hefty change, however not as much as if the interest rate increases 1%.  Let me illustrate.

If the interest rate last year was 4.0% and you fell in love with a home listed for $450,000, for giggles, imagine that the market had 0% appreciation in the past 12 months, but the interest rate this Spring is 5.0%. Given that your down payment remained the same 10% down and all other taxes, insurance and other variables in the payment remained the same, your payment would change by $214 for the same priced home this year.  How does that affect your buying power? Well to attain the same payment as last year, you would now be purchasing a $400,000 home.  A $50,000 swing in buying power is the effect of a 1% rate increase at $400,000.

In addition, the higher your price range, the higher the difference in buying power. For an FHA buyer, 3 ½% down at $225,000, their buying power would be reduced approximately $25,000 for a 1% rate increase and a larger home at $675,000, would be reduce to the $600,000 price range for the same monthly payment. As the indicators hit the market and the stock market and job employment rates are favorable, we may see rates climb this year.  We have already seen an uptick since the beginning of the year.

These are general figures, but the overall message is to consider all terms of the market that affect your payment and value when purchasing a home.  In our industry, we often see people attempting to wait out the market until the “market settles down” or “prices stabilize”. While it is always wise to not get caught up in the frenzy of the market, if you are truly looking for a home, please consider that waiting for the prices to relax may do to your buying power and overall mortgage payment. Possibly paying a little higher price on that home with a lower interest rate is not such a bad idea after all!

Tips For Getting A Mortgage

Are you considering buying a [City] property as a second home or investment? Perhaps you are looking for a small cottage or apartment where you can escape for vacation, or maybe you want to have another home closer to family. Maybe you want to rent out your second property and make a steady income from your investment. Whatever the reason, a second piece of real estate can be a fantastic investment. However, sometimes getting a mortgage on your second home can be a challenge.

Generally, a mortgage lender will have tougher standards for second home loans than primary home loans. This is because usually when you are buying a second home your finances will be stretched thinner and you will have less money to spare because you are already paying a mortgage on your primary home. This will mean that your second home mortgage can be harder to get and might have a higher interest rate.

Here are some tips to keep in mind that will help you to get the best mortgage on your second property: Build up a decent amount of savings. Your mortgage lender will want to be able to see that you have a large amount of savings so that you will have enough to pay for the mortgage even if you were to lose your job.

Pay off any credit card dept. Many lenders will be hesitant to approve your second home mortgage if they see that you have a lot of debt on your credit card. They will want to see that you have a low debt to income ratio so that you will be able to pay back the loan.

Use the first mortgage as a good reference. If you have always made your payments on time and you are most of the way through paying off your first house, you could ask someone from your current mortgage company to vouch for you. The lender for your second mortgage will be reassured that you are a reliable person to loan money to.

These are just a few tips to keep in mind in order to make getting a mortgage for your second property as easy as possible. Of course you should always consult with your own lender to see what it best for your situation.