Saturday, December 01, 2012

Home Prices Trending Up; Mortgage Rates Hit New Lows

By Gino Blefari, President & CEO, Intero Real Estate Services, Inc.

What better end to the year could housing ask for? Home sales and prices are up on average across markets. Inventory is low, but housing starts are up. Mortgage rates remain at rock bottom – and the Fed said at its meeting this month that it doesn’t anticipate raising rates any time soon.

The stars have aligned. The door to recovery is now wide open.

The September Home Price Index tracked by Lender Processing Services showed a 3.6% year-over-year increase since last September. In addition, the index rose 4.9% since the beginning of the year.
California and New York led the states with a 0.4% month-over-month increase, and Washington, D.C. led metros with a 0.6% increase from August. The largest monthly increases in the home price index took place in Arizona, Washington, D.C., Georgia, Delaware and Maryland, with Arizona holding the largest year-to-date increase at 14.4% since January.

In mortgage rates, we continue to see fantastic borrowing rates for home buyers. Average rates on a 30-year fixed-rate mortgage hit a new low of 3.31% last week, and average rates on a 15-year fixed-rate mortgage also hit a new record low of 2.63%, Freddie Mac said in its latest weekly report.

In its quest to use monetary policy to help the recovery, the Federal Reserve board indicated at its
November meeting that it would not be raising rates in the foreseeable future. In fact, Fed Chairman Ben Bernanke suggested that the Fed will keep trying to push down long-term interest rates through
2013.

As we enter 2013, inventory will be of concern in many markets that have struggled to keep up with demand. But things will be looking up next year in most markets. In fact, Daren Bloomquist of RealtyTrac said at a housing symposium in San Francisco this month that underwater homeowners are more likely to sell as prices rise next year, which will help inventory levels.

At the same symposium, Ken Rosen, an economics professor at UC Berkeley, declared housing is in recovery mode now and through next year, though he’s not anticipating a boom in sales.

Things to watch next year will be jobs and income levels, both of which have the strongest impact on housing than any other indicator.

The forecast, overall, is looking optimistic for real estate. Some markets, like ours here in Silicon Valley are already enjoying near-peak activity and pricing. Others are just starting to pull themselves up. Either way, 2013 is going to be a solid year for housing.
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Friday, November 30, 2012

Getting Ready to Sell Your Home - Tip #3

Remove Clutter


Clutter-strewn room
This is the hardest thing for most people to do because they are emotionally attached to everything in the house. After years of living in the same home, clutter collects in such a way that may not be evident to the homeowner. However, it does affect the way buyers see the home, even if you do not realize it. Clutter collects on shelves, counter tops, drawers, closets, garages, attics, and basements.
Take a step back and pretend you are a buyer. Let a friend help point out areas of clutter. Let your agent help you, too.


Kitchen Clutter

The kitchen is a good place to start removing clutter, because it is an easy place to start. First, get everything off the counters. Everything. Even the toaster. Put the toaster in a cabinet and take it out when you use it. Find a place where you can store everything in cabinets and drawers. Of course, you may notice that you do not have cabinet space to put everything. Clean them out. The dishes, pots and pans that rarely get used? Put them in a box and put that box in storage, too.

Homebuyers will open all your cabinets and drawers, especially in the kitchen. They want to be sure there is enough room for their “stuff.” If your kitchen cabinets, pantries, and drawers look jammed full, it sends a negative message to the buyer and does not promote an image of plentiful storage space. The best way to do that is to have as much “empty space” as possible.

For that reason, if you have a “junk drawer,” get rid of the junk. If you have a rarely used crock pot, put it in storage. Do this with every cabinet and drawer. Create open space.

If you have a large amount of foodstuffs crammed into the shelves or pantry, begin using them – especially canned goods. Canned goods are heavy and you don’t want to be lugging them to a new house, anyway – or paying a mover to do so. Let what you have on the shelves determine your menus and use up as much as you can.

Beneath the sink is very critical, too. Make sure the area beneath the sink is as empty as possible, removing all extra cleaning supplies. You should scrub the area down as well, and determine if there are any tell-tale signs of water leaks that may cause a homebuyer to hesitate in buying your home.

Closet Clutter

Closets are great for accumulating clutter, though you may not think of it as clutter. We are talking about extra clothes and shoes – things you rarely wear but cannot bear to be without. Do without these items for a couple of months by putting them in a box, because these items can make your closets look “crammed full.” Sometimes there are shoeboxes full of “stuff” or other accumulated personal items, too.

Furniture Clutter

Many people have too much furniture in certain rooms – not too much for your own personal living needs – but too much to give the illusion of space that a homebuyer would like to see. You may want to tour some builders’ models to see how they place furniture in the model homes. Observe how they place furniture in the models so you get some ideas on what to remove and what to leave in your house.

Storage Area Clutter

Basements, garages, attics, and sheds accumulate not only clutter, but junk. These areas should be as empty as possible so that buyers can imagine what they would do with the space. Remove anything that is not essential and take it to the storage area. Or have a garage sale.


Team Patereau will be happy to walk through your home and let you know the areas you need to give your attention to before we put up the “For Sale” sign. Contact us – we’re anxious to hear from you.
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Thursday, November 29, 2012

Getting Ready to Sell Your Home – Tip #3

Remove Clutter

Clutter-strewn roomThis is the hardest thing for most people to do because they are emotionally attached to everything in the house. After years of living in the same home, clutter collects in such a way that may not be evident to the homeowner. However, it does affect the way buyers see the home, even if you do not realize it. Clutter collects on shelves, counter tops, drawers, closets, garages, attics, and basements.
Take a step back and pretend you are a buyer. Let a friend help point out areas of clutter. Let your agent help you, too.
Kitchen Clutter
The kitchen is a good place to start removing clutter, because it is an easy place to start. First, get everything off the counters. Everything. Even the toaster. Put the toaster in a cabinet and take it out when you use it. Find a place where you can store everything in cabinets and drawers. Of course, you may notice that you do not have cabinet space to put everything. Clean them out. The dishes, pots and pans that rarely get used? Put them in a box and put that box in storage, too.
Homebuyers will open all your cabinets and drawers, especially in the kitchen. They want to be sure there is enough room for their “stuff.” If your kitchen cabinets, pantries, and drawers look jammed full, it sends a negative message to the buyer and does not promote an image of plentiful storage space. The best way to do that is to have as much “empty space” as possible.
For that reason, if you have a “junk drawer,” get rid of the junk. If you have a rarely used crock pot, put it in storage. Do this with every cabinet and drawer. Create open space.
If you have a large amount of foodstuffs crammed into the shelves or pantry, begin using them – especially canned goods. Canned goods are heavy and you don’t want to be lugging them to a new house, anyway – or paying a mover to do so. Let what you have on the shelves determine your menus and use up as much as you can.
Beneath the sink is very critical, too. Make sure the area beneath the sink is as empty as possible, removing all extra cleaning supplies. You should scrub the area down as well, and determine if there are any tell-tale signs of water leaks that may cause a homebuyer to hesitate in buying your home.
Closet Clutter
Closets are great for accumulating clutter, though you may not think of it as clutter. We are talking about extra clothes and shoes – things you rarely wear but cannot bear to be without. Do without these items for a couple of months by putting them in a box, because these items can make your closets look “crammed full.” Sometimes there are shoeboxes full of “stuff” or other accumulated personal items, too.
Furniture Clutter
Many people have too much furniture in certain rooms – not too much for your own personal living needs – but too much to give the illusion of space that a homebuyer would like to see. You may want to tour some builders’ models to see how they place furniture in the model homes. Observe how they place furniture in the models so you get some ideas on what to remove and what to leave in your house.
Storage Area Clutter
Basements, garages, attics, and sheds accumulate not only clutter, but junk. These areas should be as empty as possible so that buyers can imagine what they would do with the space. Remove anything that is not essential and take it to the storage area. Or have a garage sale.
Team Patereau will be happy to walk through your home and let you know the areas you need to give your attention to before we put up the “For Sale” sign. Contact us – we’re anxious to hear from you.

Getting Ready to Sell Your Home – Tip #2

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Ugly faucets really turn off potential buyers. Leaking, water-marked and stained faucets, faucets with crystal acrylic knobs in the bathroom look cheap and can be hard to use. Replace them with a faucet and handle set that matches the existing fixture’s configuration (centerset or widespread) and meets the standard of the Americans with Disabilities Act with flipper- or lever-style handles. Polished-chrome finish will cost you the least and still be durable. Plus, the National Kitchen & Bath Association says that the finish is enjoying a surge in popularity over brushed or satin finishes.
Team Patereau will be happy to walk through your home and let you know the areas you need to give your attention to before we put up the “For Sale” sign. Contact us – we’re anxious to hear from you.

Pre-Thanksgiving DIY Week-End Checklist

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You have time this week-end to get prepared for the big Thanksgiving holiday coming up. Here’s a checklist for you to go over to make sure everything is working in and around your house so you and your guests will fully enjoy the holiday.
We particularly like these helpful ideas:
  • If you must deep-fry your turkey, do it outside.
  • Place a plunger next to your toilet to avoid embarrassing your guests who have to ask you for one.

Thanksgiving pre-preparation pays off!

Getting Ready to Sell Your Home – Tip #1

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Thinking about what to do to your house to get it ready to sell? Here’s one of the things that Buyers really hate, and that Sellers can remedy before putting their house on the market that won’t break the bank, but will dramatically improve the sell-ability: Popcorn ceilings.
If you’ve lived with a popcorn ceiling, you know that it accumulates dirt, defies cleaning and is impossible to paint. Worse, if your home was built prior to the mid-1980s, it may contain asbestos.
Removal is a messy and laborious process, with or without asbestos. The material must be wetted down and scraped and the underlying wallboard wiped clean. Once the popcorn is gone, the ceiling is usually repaired with joint compound, textured and painted. Even if there’s no asbestos, you probably should hire a drywall or painting contractor for the job.
Before you tackle this job or any others, contact us. Team Patereau will gladly tour your home and make suggestions about what needs to be done, and what not to worry about in the current market. We’d love to hear from you.





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Getting Ready to Sell Your Home - Tip #2

Ugly faucets really turn off potential buyers. Leaking, water-marked and stained faucets, faucets with crystal acrylic knobs in the bathroom look cheap and can be hard to use. Replace them with a faucet and handle set that matches the existing fixture’s configuration (centerset or widespread) and meets the standard of the Americans with Disabilities Act with flipper- or lever-style handles. Polished-chrome finish will cost you the least and still be durable. Plus, the National Kitchen & Bath Association says that the finish is enjoying a surge in popularity over brushed or satin finishes.

Team Patereau will be happy to walk through your home and let you know the areas you need to give your attention to before we put up the “For Sale” sign. Contact us – we’re anxious to hear
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Tuesday, November 27, 2012

It's My Job

Showed a house in San Juan Bautista today. Dated, needs some work, but priced right. No chance for our clients because they are FHA and there will be multiple offers, probably over list price on this one. Agent didn’t respond to calls, but she was probably shopping or enjoying the day-after-the-holiday by relaxing away from work. Anyhoo…..no sale here today. We’ll keep looking for these clients. The really want to buy, and we’ll find somethinng.
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