Dress up your entry foyer

7 EASY WAYS TO DRESS UP AN ENTRYWAY

The entryway or foyer of your home conveys an important first impression to your guests. For homeowners bent on making it a great first impression, designers at ElleDecor.com suggest seven easy ways to make an entryway look larger, brighter, and more welcoming.

Use the power of mirrors – A well placed mirror can instantly open up a space and add a luxurious feel. Splurge on a good one.

Keep fresh flowers on hand – Nothing freshens up a room quite like a vase full of fresh flowers. They are aesthetically pleasing and will keep your entryway smelling wonderful. Using long-lasting silk flowers will hold down monthly costs, but think about replacing them with fresh flowers before a dinner party or other events.

Play with patterns and colors – Your entryway should reflect your personal style. Add a jolt of color, especially in a light, bright foyer, or bring in an unexpected wallpaper pattern to turn the space into something special.

Rethink the lighting fixtures – Swap out the lighting fixtures that came with the house for something you really love. The right overhead chandelier or well-detailed wall scones can add drama and grace to any entry.

Add a statement piece – It may be a patterned rug, tufted bench, a console table or a pair of smaller tables. There should be some element in your entryway that serves as a centerpiece and set the tone for the rest of your home.

Do use some artwork – Art bring a level of elegance to a room. A well placed piece of art, or a gallery wall of small pieces, can be the perfect finishing touch for an entryway that reflects your taste and style.

Don’t overcrowd the space – If you have an entryway big enough for several pieces of furniture, by all means go for it. But if the area is on the small side, skip the console table because the area will look better with just a few small pieces. A plant stand and a mirror may be all that is needed to dress up a small entry.

 When you are ready to change entry way, call text or email.

Is it time to plan your next move?

52% Likely to Buy in the Next 5 Years!! Are You?

 Thursday August 27th, 2015  First Time Home Buyers, For Buyers, For Sellers, Move-Up Buyers

According to the recently released BMO Harris Bank Home Buying Report, 52% of Americans say they are likely to buy a home in the next five years. Americans surveyed for the report said they would be willing to pay an average of $296,000 for a home and would average a 21% down payment. The report also had other interesting revelations.

Those Looking to Buy

• 74% of those looking to buy a new home will consult a real estate agent
• 59% said they will visit online real estate websites
• 37% will seek recommendations from friends and family
• 78% plan to get pre-approved before seriously searching for a home

Those Who Already Own

• 75% of current home owners set a budget before looking for a home. 16% ended up spending less while 13% went over their budget.
• 63% of American homeowners spent under six months looking for a new home before they made a purchase.
• 8% bought their home without participating in an active real estate search - or even any plan to buy at all - because a specific property caught their attention.

The last point is very interesting: Of those that purchased a home, 8% bought “without any plan to buy at all”. A property caught their attention and they acted on it.

Why are More People not Planning their Next Move?

Why are people that are considering a move not putting their home search to a plan, and instead, buying only when a property catches their attention? A recent article by Fannie Mae may give us that answer, there is evidence that a large numbers of homeowners are dramatically underestimating the equity they have in their current home. The report explains:

“Homeowners may be underestimating their home equity. In particular, if homeowners believe that large down payments are now required to purchase a home, then widespread, large underestimates of their home equity could be deterring them from applying for mortgages, selling their homes, and buying different homes.”

Bottom Line

Perhaps it is time to sit with a real estate professional to determine the actual equity you have in your house and take a look at the opportunities that currently exist in the real estate market. This may be the perfect time to move-up, move-down or buy that vacation home your family has always wanted.

To see how this applies to your unique situation, call, text or email.

Time for the Ride For Kids

Part of being a good citizen involves giving back to others. For many years, my charity of choice has been the Ride for Kids of the Pediatric Brain Tumor foundation. 

The 2015 local ride is only a month away. If you can both I and the kids thank you for your donation. Just click this link:

2015 Ride for Kids

The cost of waiting to accumulate a larger down payment

Should I Wait to Put Down a Bigger Down Payment?

 Wednesday August 26th, 2015  Down Payments, For Buyers, Interest Rates, Pricing

Some experts are advising that first time and move-up buyers wait until they save up 20% before they move forward with their decision to purchase a home. One of the main reasons they suggest waiting is that a buyer must purchase private mortgage insurance if they have less than the 20%. That increases the monthly payment the buyer will be responsible for.

In a recent article, Freddie Mac explained what this would mean for a $200,000 house:

However, we must look at other aspects of the purchase to see if it truly makes sense to wait.

Are you actually saving money by waiting?

CoreLogic has recently projected that home values will increase by 4.3% over the next 12 months. Let’s compare the extra cost of PMI against the projected appreciation:

If you decide to wait until you have saved up a 20% down payment, the money you would have saved by avoiding the PMI payment could be surpassed by the additional price you eventually pay for the home. Prices are expected to increase by more than 3% each of the next five years.

Saving will also be more difficult if you are renting, as rents are also projected to increase over the next several years. Zillow Chief Economist Dr. Svenja Gudell explained in a recent report:

"Our research found that unaffordable rents are making it hard for people to save for a down payment ... There are good reasons to rent temporarily – when you move to a new city, for example – but from an affordability perspective, rents are crazy right now. If you can possibly come up with a down payment, then it's a good time to buy a home and start putting your money toward a mortgage."

Laura Kusisto of the Wall Street Journal recently agreed with Dr. Gudell:

“For some renters there may be a way out: Buy a house. Mortgages remain very affordable.”

Mortgage rates are expected to rise…

Freddie Mac is projecting that mortgage interest rates will increase by almost a full percentage point over the next 12 months. That will also impact your mortgage payment if you wait.

Bottom Line

Sit with a real restate or mortgage professional to truly understand whether you should buy now or wait until you save the 20%.

When you would like to evaluate how this applies to your unique situation, call, text or email

Rents continue to outpace wage increases

Don’t Get Caught In The Renter’s Trap

 Tuesday August 25th, 2015  First Time Home Buyers, For Buyers

There are many benefits to homeownership. One of top ones is being able to protect yourself from rising rents and lock in your housing cost for the life of your mortgage.

The National Association of Realtors (NAR) released their findings of a study in which they studied“income growth, housing costs and changes in the share of renter and owner-occupied households over the past five years in metropolitan statistical areas throughout the US.”

Don’t Become Trapped

The study revealed that over the last five years a typical rent rose 15% while the income of renters grew by only 11%. If you are currently renting, this disparity in growth could get you caught up in a cycle where increasing rents continue to make it impossible for you to save for a necessary down payment.

The average renter in the United States pays 30% of their income on housing compared to that of a homeowner who can expect to spend 15%.

In many metro areas the percentage of income spent on housing is even higher and continues to rise every year. Like in San Francisco, CA, where the average renter spends 59% of their monthly income on housing or nearly 65% in Boston, MA.

Homebuyers who purchased their home over the same five-year period locked in their housing costs and were able to grow their net worth as home values have increased and their mortgage balances have gone down.

Know Your Options

Perhaps, you have already saved enough to buy your first home. HousingWire reported that analysts at Nomura believe:

“It’s not that Millennials and other potential homebuyers aren’t qualified in terms of their credit scores or in how much they have saved for their down payment.

It’s that they think they’re not qualified or they think that they don’t have a big enough down payment.” (emphasis added)

As we have reported last week, over 60% of Millennials who recently bought a home put down less than 20%; 36% put down less than 5%. Your dream home may be more attainable than you ever imagined!

Bottom Line

Don’t get caught in the trap so many renters are currently in. If you are ready and willing to buy a home, find out if you are able. Have a professional help you determine if you are eligible to get a mortgage.

For help planning your escape, call, text or email.

Inexpensive 99-cent maintenance solutions

99-Cent Solutions                    

Home maintenance doesn't have to be expensive. When your home throws you a curveball, sometimes the solution can be bought for mere pennies

Read more: http://www.houselogic.com/home-topics/99-cent-solutions/#ixzz3jk66EJMx
Follow us: @HouseLogic on Twitter | HouseLogic on Facebook

If you are thinking of buying or selling or just have a real estate question, call, text or email

Home Prices and needed income

What may be most interesting is the Income Needed column.

Home Prices Up in 93% of Measurable Markets 

Some Highlights:

• The national median home price for Q2 is up 8.2% to $229,400
• The income needed to afford the median home in each region is directly impacted by the amount of the down payment. The larger the down payment the lower the income needed to pay the monthly mortgage payment.
• The West led the way with the highest median home price at $325,200.

 When you are ready to see how this applies to your unique situation, call, text or email

Actual Down Payments

64.2% of Millennials Put Down Less than 20%

 August 20, 2015  Down Payments, First Time Home Buyers, For Buyers

Digital Risk recently polled Millennials about the housing market. Among their findings was the fact that nearly two-thirds of the generation who have recently purchased a home, have done so with less than 20% down; with 36% putting down less than 5%!

Here is a graph detailing the results:

This means that more and more American’s between the ages of 18 and 34 stopped paying their landlord’s mortgage and started building their own family’s wealth.

Millennials aren’t the only ones taking advantage of lower down payments.

The Federal Reserve Bank of New York found that if the down payment required to purchase a home went from 20% to 5%, a renter’s Willingness To Pay (WTP) increased by 40%.

The problem is that thirty-six percent of Americans still think a 20% down payment is alwaysrequired when buying a home. Many renters may actually be able to enter the housing market sooner than they ever imagined with new programs that have emerged allowing less cash out of pocket.

Bottom Line

If you are one of the many renters now realizing that the home of your dreams is obtainable, let's get together and discuss your options.

Just call, text or email

Remember the Tax benefits of home ownership

It’s never to soon to be thinking about tax season – and it’s easy for those who have just purchased a home to overlook the tax breaks that accompany that purchase.
Blanche Evans of Realty Times offers these six potential deductions to remind your recent homebuyers what to include on their taxes.

1. Property tax deduction: Any money you paid during the year you purchase and in the years afterward to local state, county and city property tax assessors is tax deductible.
2. Mortgage interest deduction: Your mortgage interest on both first and second liens is tax deductible. Any points you paid to obtain a lower interest rate are deductible. Private mortgage insurance payments are also deductible.
3. Closing costs: Some fees to the mortgage lender are deductible. Ask your tax professional for guidance. You can deduct some moving expenses, such as items for home offices. Save your Hud-1 form and show it to your tax professional.
4. Home office deductions: If your home is your principle place of business, and you meet other IRS guidelines for home businesses, you can take a deduction on workspace dedicated to your business and no other purpose. You can also depreciate that portion of your home over 39 years. All improvements to the workspace are tax deductible. In addition, your security expenses, phones, internet costs, computers, insurance, and utilities can be deducted or depreciated according to IRS allowances. Percentages and limits apply, so talk to your tax professional.
5. Energy Star: If you purchased an energy efficient system or appliance for your home and it meets government Energy Star standards, you may deduct a portion of your expenses. Save your receipts.
6. Property sales deductions: If you purchased a home today, occupied it as a primary residence, and sold it in two years, you could be eligible for some capital gains exclusions up to $250,000 if you’re single, or $500,000 if you’re married. You can even live in the home two years, rent it out for three years, and still enjoy the capital gains exclusion.

whenever you are thinking about buying, selling or just have a real estate question - call, text or email

Surviving the Heat

As we head into another hot afternoon, here are tips for survival at home.

When you are thinking of changing the place you stay cool, call, text or email

WHY BUY A HOME - THE NON-FINANCIAL REASONS

The REAL Reasons Americans Buy a Home

 August 17, 2015  First Time Home Buyers, For Buyers, Uncategorized

We often talk about the financial reasons why buying a home makes sense. But often, the emotional reasons are the more powerful, or compelling reasons. The Joint Center for Housing Studies at Harvard University performs a study every year surveying participants for the reasons that American’s feel are most important in regards to homeownership.

The top 4 reasons to own a home cited by respondents were not financial.

1. It means having a good place to raise children & provide them with a good education

From the best neighborhoods to the best school districts, even those without children at the time of purchasing their home, may have this in the back of their mind as a major reason for choosing the location of the home that they purchase.

2. You have a physical structure where you & your family feel safe

It is no surprise that having a place to call home with all that means in comfort and security is the #2 reason.

3. It allows you to have more space for your family

Whether your family is expanding, or an older family member is moving in, having a home that fits your needs is a close third on the list.

4. It gives you control over what you do with your living space, like renovations and updates

Looking to actually try one of those complicated wall treatments that you saw on Pinterest? Want to finally adopt that puppy or kitten you’ve seen online 100 times? Who’s to say that you can’t in your own home?

The 5th reason on the list, is the #1 financial reason to buy a home as seen by respondents:

5. Owning a home is a good way to build up wealth that can be passed along to my family

Either way you are paying a mortgage. Why not lock in your housing expense now with an investment that will build equity that you can borrow against in the future?

Bottom Line

Whether you are a first time homebuyer or a move-up buyer who wants to start a new chapter in their life, now is a great time to reflect on the intangible factors that make a house a home.

Whatever your reason, when you want to talk about home ownership, just call, text or email

Mortgages are available but not ridiculous

Mortgage Lending is NOT Out of Control!!

 August 12, 2015  Down Payments, For Buyers

This year, both Freddie Mac & Fannie Mae have introduced new programs that only require a 3% down payment on a mortgage in order to purchase a home. Earlier this month, the Mortgage Bankers’ Association reported that adjustable-rate mortgages (ARMs) may be making a slow comeback as the share of ARMs increased to 7.4 percent of total mortgage applications. Some see this loosening of lending standards as a point of concern.

We know that the ridiculously low lending standards of the early 2000’s were part of the reason a housing bubble formed and burst last decade. Some are worried that we are headed down the same road that caused that housing crisis.

However, a recent survey of a distinguished panel of over 100 economists, investment strategists, and housing market analysts conducted by Pulsenomics showed the vast majority disagree. The survey revealed that only 4% of the experts felt that over the next twelve months lending standards would “ease too much, become too lax”.

Here are the results of that survey:

Bottom Line

There is no question that lending standards are easing; thereby giving more families the opportunity of accomplishing the American Dream of homeownership. However, we are not going back to the ridiculousness of the last decade.

Let me put you in touch with local lenders to get you the mortgage you need - just call, text or email

What Millennials are actually putting down on their homes

The survey results are in and despite the media talk of requirements for large down payments, it turns out that 36% of millennials are putting down 5% or less.

Don't be scared out of home ownership by media hype. Get the FACTS.

For contact info to responsible local mortgage lenders or any other real estate question, just call text or email. 

What You Need to Know About the Mortgage Process

 August 7, 2015  Down Payments, Infographics

When you are thinking about moving forward, call, text or email for mortgage professionals who can help

HARRISBURG HOUSING MARKET REPORT

Looking good across almost all price ranges.  Remember that 6 months is considered a balanced market.
Through July, with exception only of the very lowest in Dauphin and the very high prices, the market is balanced to a Seller's market.

To see how this applies to your unique situation, just call, text or email

WHAT IS DIFFERENT ABOUT TODAY'S LOW DOWN PAYMENT MORTGAGE

• ELLING?
• GET IN TOUCH

This Is NOT Your Parents’ 3% Down Payment Plan

 August 5, 2015  Down Payments, For Buyer

In their latest Housing Market Insight & Outlook report, Freddie Mac revealed that recent low down payment initiatives have raised concerns that we may be returning to the same lax mortgage qualifications that caused the housing crisis from which we are just now recovering.

The report went on to explain that today’s underwriting guidelines are nothing like those that existed just prior to the housing meltdown.

“Pre-crisis underwriting allowed layered risk, that is, the combination of multiple features that amplified credit risk. Low down payments often were combined with variable-payment loan structures, property-based underwriting, and questionable appraisals. These risk factors, along with the ‘irrational exuberance’ of some borrowers, led to large losses during the crisis.”

What is layered risk?

In the pre-crisis environment, many mortgage loans incorporated several additional features besides low down payments that multiplied the total risk of the loans such as: variable payment options, underwriting based on the property not the borrower, questionable appraisal processes. Borrower expectations were also overly optimistic at that time.

Freddie Mac highlights the difference between then and now by using a table in the report:

By removing the “layered risk”, we can be confident that low down payment programs will not impact the market the way mortgage underwriting impacted the market a decade ago. And the report explains:

“Previous research has found that reduced down payments can increase the relative probability of homeownership among some groups by over 25 percent.”

Bottom Line

We believe the report’s conclusion says it all:

“As long as the underwriting process bars the return of the layered risks prevalent in the pre-crisis era, lower down payments are not a cause for concern.”

To see how this applies to your unique situation just call text or email

THE IMPORTANCE OF PRICING YOUR HOME CORRECTLY

Selling Your Home? Price It Right From the Start!

In today’s market, where demand is outpacing supply in many regions of the country, pricing a house is one of the biggest challenges real estate professionals face. Sellers often want to price their home higher than recommended, and many agents go along with the idea to keep their clients happy. However, the best agents realize that telling the homeowner the truth is more important than getting the seller to like them.

There is no “later.”

Sellers sometimes think, “If the home doesn’t sell for this price, I can always lower it later.” However, research proves that homes that experience a listing price reduction sit on the market longer, ultimately selling for less than similar homes.

John Knight, recipient of the University Distinguished Faculty Award from the Eberhardt School of Business at the University of the Pacific, actually did research on the cost (in both time and money) to a seller who priced high at the beginning and then lowered the their price. In his article, Listing Price, Time on Market and Ultimate Selling Price published in Real Estate Economics revealed:

“Homes that underwent a price revision sold for less, and the greater the revision, the lower the selling price. Also, the longer the home remains on the market, the lower its ultimate selling price.”

Additionally, the “I’ll lower the price later” approach can paint a negative image in buyers’ minds. Each time a price reduction occurs, buyers can naturally think, “Something must be wrong with that house.” Then when a buyer does make an offer, they low-ball the price because they see the seller as “highly motivated.” Pricing it right from the start eliminates these challenges.

Don’t build “negotiation room” into the price.

Many sellers say that they want to price their home high in order to have “negotiation room.” But, what this actually does is lower the number of potential buyers that see the house. And we know that limiting demand like this will negatively impact the sales price of the house.

Not sure about this? Think of it this way: when a buyer is looking for a home online (as they are doing more and more often), they put in their desired price range. If your seller is looking to sell their house for $400,000, but lists it at $425,000 to build in “negotiation room,” any potential buyers that search in the $350k-$400k range won’t even know your listing is available, let alone come see it!

One great way to see this is with the chart below. The higher you price your home over its market value, the less potential buyers will actually see your home when searching.

A better strategy would be to price it properly from the beginning and bring in multiple offers. This forces these buyers to compete against each other for the “right” to purchase your house.

Look at it this way: if you only receive one offer, you are set up in an adversarial position against the prospective buyer. If, however, you have multiple offers, you have two or more buyers fighting to please you. Which will result in a better selling situation?

The Price is Right

Great pricing comes down to truly understanding the real estate dynamics in your neighborhood. Let's get together to discuss what is happening in the housing market and how it applies to your home.

To see how this applies to your unique situation just call, text or email