Wealthy Buyers Re-emerge in Real Estate

Wealthy Buyers Re-emerge in Real Estate

The rich have returned to the real estate market and are taking advantage of big bargains in luxury homes. Sales of million-dollar homes and condos increased last year in all 20 major metro areas — with some cities seeing an 18.6 percent increase in high-end home sales, according to DataQuick Information Systems. The increase follows four consecutive years of declines in million-dollar homes.

The market that fared the best in high-dollar real estate: San Jose, Calif., which boasted a 27.4 percent increase in sales last year in million-dollar homes. Honolulu also saw a big spike in million-dollar sales — a 26 percent increase — as well as New York, where million-dollar home sales rose nearly 25 percent.

In Washington, D.C., million-dollar home sales grew by 20 percent, as government workers continued to help the high-end real estate market there. Washington, D.C., has recently been ranked as one of the highest paid cities, as well as best educated place in the country.

Other cities with big gains in million-dollar home sales include San Diego (14 percent) and Nashville (13 percent).

"It hasn't been a good six months for all people, but it was a good six months for rich people," Glenn Kelman, CEO of Seattle-based real estate brokerage Redfin, told CNNMoney. "When Wall Street goes up, rich people buy homes."

Source: “Who’s Buying Homes? The Rich,” CNNMoney (March 7, 2011)

To purchase Austin, Houston, or Colorado Real Estate feel free to contact Austin, Houston, & Colorado Realtor, Zachary Miller at Miller & Associates:  12400 W Hwy 71 Austin, TX 78738  1-800-965-3013x1 for immediate assistance.

4 Model Homes Tricks to Use on Your Listings

4 Model Homes Tricks to Use on Your Listings

Model homes are designed to give buyers the allusion of perfection. Mary Cook, an interior designer with Mary Cook & Associates, has built her business around "merchandising" model homes for builders nationwide, and she says sellers could learn from tricks of model merchandisers in preparing their own home for sale.

Here are a few tips she recently shared with the Chicago Tribune.

1. First impressions count. “I'd put the effort right into what they see when they walk through the door,” Cook says. “If you ‘capture’ them and elevate their mood right away, it will carry the house better than if you had to earn their ‘uplifted emotions’ later on in other rooms of the house.”

2. Make sure scale and proportion fit. Cook says many sellers struggle with high ceilings in McMansions and what to do with those two-story walls. “They say, do I hang pictures at 14 feet? They're hesitant to go out and buy a big, monster piece of art, but if a professional designer would see that you've done that, they'd say it's perfect, and you're done,” Cook says. “If you have a whole bunch of little things, putting them in a group together on the wall can have the same effect, though there's an art to grouping them.”

3. Use color to enhance. Staying in safety neutral color zone, she says, isn’t always going to work, but be careful in the color you choose because it can have a big effect on buyers. “I remember years ago we did a model home where we painted the walls a banana yellow, and it wasn't received well at all,” Cook says. “Older people would catch a glimpse of themselves in the mirror, and it was harsh; they just didn't look good. We changed it to a peachy color, and people seemed to feel better in there. It goes back to elevating the buyer's mood."

4. Stand out. “Presume that the buyer has three houses lined up, and they're all at the right price,” Cook says. “You have to identify all the reasons why somebody would possibly want to live there and what makes your place different.” For example, she’ll often have a basket on the countertop filled with a collection of dining brochures, maps, fitness center brochures, activity calendars from the park district, nearby restaurant menus, local hospital information, and information on the local schools--any information that highlights the benefits of living there.

Source: “Selling? Set a Tone for Buyers,” Chicago Tribune (March 6, 2011)

To purchase Austin, Houston, or Colorado Real Estate feel free to contact Austin, Houston, & Colorado Realtor, Zachary Miller at Miller & Associates:  12400 W Hwy 71 Austin, TX 78738  1-800-965-3013x 1 for immediate assistance.

Future of 30-Year Mortgages at Risk?

Future of 30-Year Mortgages at Risk?


Proposals to phase out Fannie Mae and Freddie Mac may make 30-year fixed-rate mortgages harder to find, housing experts say.

An outline drafted by the Treasury Department, the Department of Housing and Urban Development, and the White House and circulated last month calls for winding down Fannie and Freddie over the next five to seven years. Congress continues to debate the future of Fannie and Freddie, and how and whether it should move to phase out the government-sponsored enterprises (GSEs). For its part, the Obama administration has argued for scrapping the GSEs, but replacing them with some form of federal involvement in mortgage financing.

But housing experts warn that 30-year fixed rate mortgages — a popular choice among buyers — might become harder to find and more expensive without Fannie and Freddie to buy these loans. Banks may be less willing to extend credit at a fixed rate over such a long term, housing experts note, since investors often prefer loans with adjustable rates rather than loans with longer terms, which expose them to interest rate risk.

“Traditionally, banks have been less willing to keep 30-year fixed-rate mortgages on their balance sheets, so in the absence of a vibrant securitization market, banks would more heavily favor adjustable-rate products,” John Mechem, a spokesman for the Mortgage Bankers Association, told The New York Times.

There is a lot of uncertainty about the process of phasing out Fannie and Freddie and how it will affect mortgage products, Barry Zigas, the director of housing policy at the Consumer Federation of America, told The New York Times.

Alex J. Pollock, a former chief executive of the Federal Home Loan Bank of Chicago, told The New York Times that he believes 30-year loans would remain available regardless of a federal guarantee, but they might be more difficult to find and lenders might require larger down payments and better credit scores.

“One of the reasons that American housing finance is in such bad shape right now is the 30-year mortgage,” Pollock argues. “For many people, it’s not at all clear that that’s the best product.”

Source: “A Plan to Phase Out Fannie Mae and Freddie Mac,” The New York Times (March 6, 2011) and “Without Loan Giants, 30-Year Mortgage May Fade Away,” The New York Times (March 4, 2011)

To purchase Austin, Houston, or Colorado Real Estate feel free to contact Austin, Houston, & Colorado Realtor, Zachary Miller at Miller & Associates:  12400 W Hwy 71 Austin, TX 78738  1-800-965-3013x 1 for immediate assistance.

7 Tips for Staging Your Home

By: G. M. Filisko

Published: March 19, 2010

Make your home warm and inviting to boost your home’s value and speed up the sale process.

1. Start with a clean slate

Before you can worry about where to place furniture and which wall hanging should go where, each room in your home must be spotless. Do a thorough cleaning right down to the nitpicky details like wiping down light switch covers. Deep clean and deodorize carpets and window coverings.

2. Stow away your clutter

It’s harder for buyers to picture themselves in your home when they’re looking at your family photos, collectibles, and knickknacks. Pack up all your personal decorations. However, don’t make spaces like mantles and coffee and end tables barren. Leave three items of varying heights on each surface, suggests Barb Schwarz ofhttp://www.stagedhomes.com/ in Concord, Pa. For example, place a lamp, a small plant, and a book on an end table.

3. Scale back on your furniture

When a room is packed with furniture, it looks smaller, which will make buyers think your home is less valuable than it is. Make sure buyers appreciate the size of each room by removing one or two pieces of furniture. If you have an eat-in dining area, using a small table and chair set makes the area seem bigger.

4. Rethink your furniture placement

Highlight the flow of your rooms by arranging the furniture to guide buyers from one room to another. In each room, create a focal point on the farthest wall from the doorway and arrange the other pieces of furniture in a triangle around the focal point, advises Schwarz. In the bedroom, the bed should be the focal point. In the living room, it may be the fireplace, and your couch and sofa can form the triangle in front of it.

5. Add color to brighten your rooms

Brush on a fresh coat of warm, neutral-color paint in each room. Ask your real estate agent for help choosing the right shade. Then accessorize. Adding a vibrant afghan, throw, or accent pillows for the couch will jazz up a muted living room, as will a healthy plant or a bright vase on your mantle. High-wattage bulbs in your light fixtures will also brighten up rooms and basements.

6. Set the scene

Lay logs in the fireplace, and set your dining room table with dishes and a centerpiece of fresh fruit or flowers. Create other vignettes throughout the home—such as a chess game in progress—to help buyers envision living there. Replace heavy curtains with sheer ones that let in more light.

Make your bathrooms feel luxurious by adding a new shower curtain, towels, and fancy guest soaps (after you put all your personal toiletry items are out of sight). Judiciously add subtle potpourri, scented candles, or boil water with a bit of vanilla mixed in. If you have pets, clean bedding frequently and spray an odor remover before each showing.

7. Make the entrance grand

Mow your lawn and trim your hedges, and turn on the sprinklers for 30 minutes before showings to make your lawn sparkle. If flowers or plants don’t surround your home’s entrance, add a pot of bright flowers. Top it all off by buying a new doormat and adding a seasonal wreath to your front door.

More from HouseLogic

Spring cleaning guide 

Green cleaning products for the bathroom

Green cleaning products for the kitchen

Other web resources

How to make a small room look larger 

How to arrange bedrooms 

To purchase Austin, Houston, or Colorado Real Estate feel free to contact Austin, Houston, & Colorado Realtor, Zachary Miller at Miller & Associates:  12400 W Hwy 71 Austin, TX 78738  800.965.3013 x 1 for immediate assistance.

5 Tips to Prepare Your Home for Sale

5 Tips to Prepare Your Home for Sale

By: G. M. Filisko

Published: February 10, 2010

Working to get your home ship-shape for showings will increase its value and shorten your sales time.

1. Have a home inspection

Be proactive by arranging for a pre-sale home inspection. For $250 to $400, an inspector will warn you about troubles that could make potential buyers balk. Make repairs before putting your home on the market. In some states, you may have to disclose what the inspection turns up.

2. Get replacement estimates

If your home inspection uncovers necessary repairs you can’t fund, get estimates for the work. The figures will help buyers determine if they can afford the home and the repairs. Also hunt down warranties, guarantees, and user manuals for your furnace, washer and dryer, dishwasher, and any other items you expect to remain with the house.

3. Make minor repairs

Not every repair costs a bundle. Fix as many small problems—sticky doors, torn screens, cracked caulking, dripping faucets—as you can. These may seem trivial, but they’ll give buyers the impression your house isn’t well maintained.

4. Clear the clutter

Clear your kitchen counters of just about everything. Clean your closets by packing up little-used items like out-of-season clothes and old toys. Install closet organizers to maximize space. Put at least one-third of your furniture in storage, especially large pieces, such as entertainment centers and big televisions. Pack up family photos, knickknacks, and wall hangings to depersonalize your home. Store the items you’ve packed offsite or in boxes neatly arranged in your garage or basement.

5. Do a thorough cleaning

A clean house makes a strong first impression that your home has been well cared for. If you can afford it, consider hiring a cleaning service.

If not, wash windows and leave them open to air out your rooms. Clean carpeting and drapes to eliminate cooking odors, smoke, and pet smells. Wash light fixtures and baseboards, mop and wax floors, and give your stove and refrigerator a thorough once-over.

Pay attention to details, too. Wash fingerprints from light switch plates, clean inside the cabinets, and polish doorknobs. Don’t forget to clean your garage, too.

More from HouseLogic

Develop a Landscape Plan to Fit Your Budget

Spring Cleaning Guide

To purchase Austin, Houston, or Colorado Real Estate feel free to contact Austin, Houston, & Colorado Realtor, Zachary Miller at Miller & Associates:  12400 W Hwy 71 Austin, TX 78738  800.965.3013 x 1 for immediate assistance.

More Americans Confident About Home Ownership

More Americans Confident About Home Ownership

Americans are more confident about the stability of home prices than they were at the beginning of 2010, according to Fannie Mae's latest national housing survey, conducted between October 2010 and December 2010.. And when it comes to home ownership, younger Americans are particularly optimistic, the survey finds.
　
Nearly 80 percent of all respondents, including home owners and renters, surveyed said they thought housing prices would hold steady or increase over the next 12 months--which is up from 73 percent in January 2010. In fact, survey respondents expressed more confidence over the stability of home prices than they did about the overall strength of the economy. Sixty-one percent said the economy is heading on the wrong track.
　
Young Americans, Hispanics, and African-Americans were the most positive about their views on home ownership among the general population, according to the survey. Nearly 60 percent of Generation Y respondents (those between 18-34 years old) say that buying a home offers a lot of potential as an investment. Also, more than one-third of Hispanics and African Americans say they plan to buy a home within the next three years, compared to one in four of the general population.
　
"We are also seeing encouraging signs in the positive attitudes toward home ownership among younger Americans, despite the severe impact of the housing crisis on Generation Y," says Doug Duncan, Fannie Mae’s chief economist. "But most respondents to our survey continue to lack confidence in the strength of the economic recovery, and they are less optimistic about their ability to buy a home in the years ahead. This sense of uncertainty is weighing on the housing recovery today and reshaping expectations for housing for the future."
Source: "Fannie Mae’s Latest National Housing Survey Shows Key Changes in Americans’ Attitudes Toward Housing and the Economy," RISMedia (March 1, 2011)

To purchase Austin, Houston, or Colorado Real Estate feel free to contact Austin, Houston, & Colorado Realtor, Zachary Miller at Miller & Associates:  12400 W Hwy 71 Austin, TX 78738  800.965.3013 x 1 for immediate assistance.

The 5 New Rules of Real Estate

Published March 02, 2011 | FoxNews.com

Read more: http://www.foxnews.com/leisure/2011/03/02/5-new-rules-real-estate/#ixzz1FvjeWplU

We’re about to enter the peak season for real estate shopping: spring. But, before you jump in with both feet, you should know a lot has changed since the last time you may have bought or sold a house. It’s like dating — all of those old rules you used to know have changed over the past few years. It’s important that your approach to home ownership reflects the realities of the current market, and not those of the housing boom. Here are a few of the new real estate rules to help guide you this spring:
1. Then: Don’t buy now, home values have further to fall
Now: It’s a fool’s errand trying to time the bottom. Economists don’t even agree on when the bottom will occur, so the average person probably won’t be able to time it perfectly. While it’s true that home values have further to fall in many areas this year, interest rates will likely rise, offsetting any savings that may come from lower home values.
2. Then: It’s better to buy than to rent
Now: It’s a buyer’s market across most of the U.S. But the time frame for how long you need to live in your home varies greatly across markets. A good rule of thumb is, if you are going to live in your home at least 5-7 years, then buying makes sense in most places. Home values will likely stay flat for several years after we reach bottom at the end of this year, but if you’re planning to live in your home long term, you can ride out the years where appreciation remains flat and come out ahead in the end.
3. Then: You should spend 1/3 of your monthly gross income on your mortgage
Now: During the bubble, many people listened to the advice that they should "stretch" to buy a house. Now, many want to avoid being "house poor." The standard rule of thumb was to spend no more than 30 percent of your pretax monthly income on your mortgage. Now, many financial experts recommend spending no more than 25 percent. But really, only you can truly figure out what you can, or want to afford based on your various goals (college and retirement savings), lifestyle (kids, travel, special interests) income and debts. So take the time to do your own math.
4. Then: When it comes to re-sale value think: Location, Location, Location
Now: The suburbs are often thought of as the more desirable place to live, compared to the city (better schools, lower crime). So one would think homes in the suburbs would have weathered the housing downturn better than homes in the city. However, according to analysis from Zillow, in most major metros (with some exceptions) home values closer to city center held up better than those in the ‘burbs.
5. Then: Only refinance if rates are dropping
Now: Everyone jumped at the chance to refinance when rates fell below 4 percent. Now that rates are higher it may seem like the opportunity to save money on your mortgage is over. Not necessarily. While rates may have inched higher, they are still at overall historic lows and the general consensus is rates will continue to trend up. So, if you haven’t refinanced yet, even though rates are a bit higher, start shopping for mortgage quotes today. You haven’t missed the boat yet.


Read more: http://www.foxnews.com/leisure/2011/03/02/5-new-rules-real-estate/#ixzz1FvjFmpGv

To purchase Austin, Houston, or Colorado Real Estate feel free to contact Austin, Houston, & Colorado Realtor, Zachary Miller at Miller & Associates:  12400 W Hwy 71 Austin, TX 78738  800.965.3013 x 1 for immediate assistance.

Mortgage Rates Drop Again This Week

Mortgage Rates Drop Again This Week 
For the third straight week, long-term mortgage rates inched down, according to Freddie Mac’s weekly mortgage survey. 

The 30-year fixed rate mortgage averaged 4.87 percent for the week, down from last week’s 4.95 percent. The rate was 4.97 percent at this time last year. 

The 15-year mortgage rate also dipped for the week, averaging 4.15 percent, down from last week’s 4.22 percent. 

The 5-year adjustable-rate mortgage averaged 3.72 percent, which is a drop from last week’s 3.8 percent average.

"Mortgage rates saw an overall improvement this week,” says Frank Nothaft, Freddie Mac’s chief economist. “Interest rates for 30-year fixed mortgages were almost 0.2 percentage points below this year's high set just three weeks ago.” This means that home buyers can now expect to pay $263 less per year on a $200,000 loan, Nothaft adds. 

Source: “30-Year Fixed-Rate Mortgage Drops for Third Consecutive Week,” Freddie Mac (March 3, 2011)

To purchase Austin, Houston, or Colorado Real Estate feel free to contact Austin, Houston, & Colorado Realtor, Zachary Miller at Miller & Associates:  12400 W Hwy 71 Austin, TX 78738  800.965.3013 x 1 for immediate assistance.