Monday, August 25, 2014

Heighten Your Senses– Give Yourself a Competitive Edge

When you’re in the process of selling your home, consider what you look for when buying a home. In order to get a buyer to make a purchase, they must feel an emotional tie to the home. Factors like location and price play a prominent part, but by appealing to a buyers’ emotions you’re putting the icing on the cake. An emotional pull is likely to outweigh other factors. One of the easiest ways to create that connection is by creating an inviting sensory experience.
The sense of smell might be the most impactful of all the senses. Think about your own life, do certain smells conjure up both happy and sad memories. Smell can transport you to a different time and place. As a home seller you can use this to your advantage. Start by thoroughly cleaning your home; steam clean carpets, air out closed off rooms and invest in lightly scented air fresheners (be cautious of anything too bold). Pay attention to anything that can cause an unpleasant odor, like garbage cans and dirty laundry, and make sure these areas are cleaned before an open house or showing. If you have notice of an open house or showing, consider baking homemade goodies. Accompany the treats with a handwritten note inviting the guests to sit, relax and enjoy. The aroma and hand written note will make the potential buyer feel right at home and hopefully remind them of fond memories associated with the scent.
On that same note, taste can also be used as a way to build an emotional connection. Set out coffee, fresh baked goods, fruit or even candy. This can help buyers to feel comfortable and leave them with a pleasant impression.
Another way to relax and make a potential buyer feel at home is through music. Like the sense of smell,sound can also have a positive (or negative) impact on a potential buyer. Keep music low so you’re not disrupting the buyer, but consider playing soft, upbeat melodic music in the background.
Never underestimate the sense of sight. Like scent, this can be a very powerful sensory trigger. Look at the outside of your home. What kinds of emotions does it bring up? Be sure that your lawn is up kept and your exterior looks inviting. Inside the home, remove any clutter and have toys packed away neatly if you have children. Because you want the buyer to see themselves in your home, remove any family photos to create a clean slate. Visualization is easier for the buyer in a tidy and neutral environment.
Lastly, don’t forget about your sense of touch. If there’s a surface in your house that looks unpleasant to touch, this will be an unattractive quality to your buyers. Make sure surfaces are dusted and any other kind of grime or residue is removed. Happy selling!

Friday, August 22, 2014

Weekly Mortgage Update

August 22, 2014
by Kelly Marsh

Reduced concerns about the conflict in Ukraine caused investors to shift back to riskier assets early this week, reversing much of the improvement in rates from the prior week. Stronger than expected housing data and slightly more hawkish comments from Fed officials also were negative for mortgage rates. As a result, mortgage rates ended the week a little higher.
THIS WEEK'S RATE TREND IS UP
Loan Amounts under $417K, Shown as Note Rate / (APR)
Conforming 30 year fixed: 4.125% / (APR 4.210)
FHA 30 Year Fixed: 3.750% / (APR 5.265)
Conforming 5/1 ARM: 2.875% / (APR 3.044)
Conforming 7/1 ARM: 3.250%      / (APR 3.259)

Loan Amounts over $417K up to County Limits, Shown as Note Rate / (APR)
High Balance Conf. 30 Year Fixed: 4.250% / (APR 4.323%)
FHA High Balance 30 Year Fixed: 3.875% / (APR 5.492)
High Balance 5/1 ARM: 3.375% / (APR 3.089)

Loan Amounts Exceeding County Limits, Shown as Note Rate / (APR)
Jumbo 30 Year Fixed: 4.000% / (APR 4.110%)
Jumbo 5/1 ARM:  2.875% / (APR 3.044%)
Jumbo 7/1 ARM: 3.3750% / (APR 3.189)
Jumbo 10/1 ARM: 3.625% / (APR 3.459)

Loan Limit Snapshot

Conforming
All Counties: $417,000

High Balance Conforming
Santa Barbara: $625,500
Ventura: $598,000
San Diego: $546,250
LA/Orange: $625,500
High Balance FHA
Santa Barbara: $625,500
Ventura: $598,000
San Diego: $546,250
LA/Orange: $625,500



Licensed by the Department of Corporations under the California Residential Act License #813G136.  Subject to applicant and property qualification and availability of funds. Subject to change without notice. Rates and terms apply only to subject programs. Unless otherwise noted, rates shown are based on the purchase of a primary residence with one point loan origination. Rates vary by situation, so please call for a personalized rate quote.  This is intended to be informational to the real estate industry only and is not to be used with respect to an individual consumer who may be seeking mortgage credit, as certain information is not included, such as the APR.  Registered with the Nationwide Mortgage Licensing System and registry, NMLS #245822.

Friday, August 15, 2014

Sewer Lateral Inspections in Ventura and its Role in Home Sales

There’s a new ordinance affecting the residents of the City of Ventura that also impacts home sales. Effective February 3, 2014 inspections of private sewer laterals are required prior to closing. This new ordinance came about due to a lawsuit involving the City of Ventura’s sewage overflow and in an effort to prevent disruptions in operation of the public sewer. The required inspections are aimed at helping residents identify timely inspections and repairs or replacements of private sewer laterals. A private sewer lateral is the pipe that connects a business or home’s plumbing system to the City’s wastewater collection pipeline. The homeowner is responsible for the entire pipe length, not just the portion underneath their property. Although Ventura Water is responsible for maintenance on the main pipelines, private property maintenance is the responsibility of the property owner.
If you’re a real estate agent or someone that is considering selling your home, you are encouraged to have a licensed plumber inspect your home prior to the opening of escrow. This will ensure you that you have plenty of time to complete the inspection and required paperwork. Sellers are required to submit the Private Sewer Lateral Inspection Report to the city’s Building and Safety Division prior to closing.
In the event that repairs are required, the buyer and seller may reach an agreement in regards to who is responsible for financing and making all necessary repairs. Generally, the repairs should be made within a six month window of the home sale.
For an overview of the new ordinance, watch this video from Ventura Water. More information is also available at http://www.cityofventura.net/water/privatelateral. For a copy of the required Private Sewer Lateral Inspection Report, visit http://www.cityofventura.net/files/file/public-works/water/BS%20625%20Private%20Sewer%20Lateral%20Inspection%20Report.pdf.
This post is brought to you on behalf of Karen Musser. Karen is based out of our Montecito Office and services both Santa Barbara and Ventura counties.

5 Factors That Influence Your Home's Resale Value

Thinking about selling your home? See what determines your property's market value.


While home sellers hope to get top dollar for their property – and some have an inflated idea of what to expect – establishing a home's value can be a complex, multifaceted process. Do home renovations really pay off? And which is more valuable: a three-bedroom or a four-bedroom with the same square footage? We talked to real estate insiders to find out.

1. Location. The classic real estate refrain says, "location, location, location." Location includes factors such as the price of recent nearby transactions, the quality of local schools and whether the area has a strong sense of community. "Buyers increasingly value community in the community where they're buying," says Amy Anderson, an agent with Davidson Realty, Inc. in St. Augustine, Florida. "They come to me not looking for a house for four years, but focusing much more on the community, the activities and the school district.

As Americans scale back their dependence on automobiles, some homebuyers seek out communities that don't require cars to get around. One resource is WalkScore.com, which rates neighborhoods throughout the U.S. based on access to public transit and proximity to grocery stores, parks and more." I think walkability has become more important in many markets, especially amongst millennials," says Ken Wilson, president of the Appraisal Institute, a professional association for real estate appraisers, and founder of Wilson Realty Advisors in Dallas. "You're also finding empty nesters that are looking into properties that have walkability."

But as Zillow.com chief economist Stan Humphries points out, location encompasses many other considerations. "Does it have a view? Is it a waterfront home?" he asks. "What's it next to? Is it near retail establishments? Or a highway?"
2. Size and layout. While homebuyers used to swoon over ample square footage, many have fallen out of love with the McMansion. "I think people realize when they buy a 3,300-square-foot house, they’re not getting what they thought they were," Anderson says. "There’s more upkeep and a lot more involved with taking care of these huge houses."

Layout is a key factor because an open-concept design can look much more spacious than a boxy space of the same size. The number of bedrooms also influences a home's value, so think twice before putting up a wall and subdividing one room into two. "Adding a bedroom will take away value," Humphries says. "Fewer but larger bedrooms tend to boost value."

3. Age and condition. Historic homes (assuming they're livable and well-maintained) and new homes are typically more valuable than homes built somewhere in the middle. "Generally, as a home gets older, it becomes less valuable," Humphries says. "Then there's a U-shape where, at some point, homes become so old that they have historical significance. A home that's built in 1910 is probably more valuable than one built in 1970."

Age aside, condition matters too. "Someone will pay $15,000 more for a well-kept house that’s move-in ready than they will for a house that needs $5,000 worth of work," Anderson says.

4. Upgrades. Renovations play into a home's value, but if your home is considered "over improved" compared with other properties in the neighborhood, it can actually hurt the property's value. "You want it to be common for the neighborhood or subdivision," Wilson says. "It wouldn't hurt to visit neighbors' homes or visit a home via an open house to see what people are marketing [before undertaking big improvements]." You could also hire an appraiser to prepare a feasibility analysis that will help you determine the impact of renovations on your home's value.

Unless you live in an area where granite countertops and built-in wine fridges are the norm, Humphries says you might be better off saving the money and choosing more basic finishes. "It's harder to recoup [your investment] if you guild the lily, if you will, on granite this and chrome that in your kitchen," he says. "You're spending a lot of money on something that might have a lot of personal taste attached to it."

However, you should keep records of repairs and upgrades to show potential buyers that the home has been well-maintained.

5. Negative events. If your property has issues like mold or experienced a fire or was the site of a violent crime, it could be a harder sell – and command a lower price. "Nowadays, people are very concerned if there was a fire, prior mold damage or even if there were some sort of death or crime at the property," Wilson says. Federal law requires the disclosure of all known lead-based paints, but state laws vary in whether the seller must disclose issues related to natural disasters or crimes committed on the property.

Monday, August 11, 2014

Weekly Mortgage Rate Update

With a light slate of economic reports this week, the conflict in Ukraine had the greatest effect on mortgage rates. Shifting sentiment about the likelihood of escalation caused some market volatility during an otherwise quiet week. Mortgage rates ended the week a little lower.
Big Changes Coming August 16th for Conforming Buyers (up to $625,500 loan amounts). With 20% down payments, it used to be a 2 year waiting period to purchase again after a short sale however effective August 16th this is increasing to 4 years after a short sale. 

THIS WEEK'S RATE TREND IS LOWER
Loan Amounts under $417K, Shown as Note Rate / (APR)
Conforming 30 year fixed: 4.125% / (APR 4.210)
FHA 30 Year Fixed: 3.750% / (APR 5.265)
Conforming 5/1 ARM: 2.875% / (APR 3.044)
Conforming 7/1 ARM: 3.250%      / (APR 3.259)

Loan Amounts over $417K up to County Limits, Shown as Note Rate / (APR)
High Balance Conf. 30 Year Fixed: 4.250% / (APR 4.323%)
FHA High Balance 30 Year Fixed: 3.875% / (APR 5.492)
High Balance 5/1 ARM: 3.375% / (APR 3.089)

Loan Amounts Exceeding County Limits, Shown as Note Rate / (APR)
Jumbo 30 Year Fixed: 4.000% / (APR 4.110%)
Jumbo 5/1 ARM:  2.875% / (APR 3.044%)
Jumbo 7/1 ARM: 3.3750% / (APR 3.189)
Jumbo 10/1 ARM: 3.625% / (APR 3.459)

Loan Limit Snapshot

Conforming
All Counties: $417,000

High Balance Conforming
Santa Barbara: $625,500
Ventura: $598,000
San Diego: $546,250
LA/Orange: $625,500

High Balance FHA
Santa Barbara: $625,500
Ventura: $598,000
San Diego: $546,250
LA/Orange: $625,500


Kelly Marsh
Aug. 8, 2014

Saturday, August 2, 2014

Home Improvements That Can Help Sell Your Home

Whether you just started thinking about selling your home or you home is already on the market, completing a few home improvement projects can go a long way to increase the value of your home. In fact, a recent study by RIS Media showed that 32% of consumers planned to spend money on improving their home; 20% of those respondents planned to sell their home after renovations.
When considering home improvements it’s important to remember that bigger does not always mean better. There are a number of high-cost projects that can help you sell your home, but there are also a number of budget-friendly projects that can go a long way. Keep in mind, the goal is not to focus on luxury updates, but rather home functionality updates. Below is our list of home projects that have a direct correlation with resale value.
High Cost, High Payoff Projects
  • Windows – these can be expensive to replace, but buyers expect windows to be in good condition. If your windows are old and in rough shape consider replacing. However, if your windows are in good condition, replacing them will not dramatically increase the value of your home.
  • Roof – like windows, this is an expensive replacement. Use the same mentality, if your roof is in good shape no need to replace.
  • Kitchen updates – depending on the upgrade, these can also come with a hefty price tag; although, these types of updates also tend to have a big payoff. Readers frequently see mentions of kitchen upgrades in listings for a reason, these types of upgrades are selling points.
  • Bathroom updates – like the kitchen, consumers prefer to see a modernized bathroom. Update this room to ensure a better selling price.
Low Cost Projects
  • Add curb appeal – this can be as simple as cleaning up the yard; get rid of weeds and ensure lawn is nice and green. Go the extra mile by adding a fresh coat of paint to the door, trim and exterior. If money permits, consider adding some landscaping to the yard.
  • Interior color – painting a room can completely change the look and feel. If you have a room that is need of an upgrade start by adding a fresh coat of paint. Take a look at your kitchen as well, if your cabinets are looking a bit drab add paint or stain.
  • Update lighting fixtures – Modernizing lighting fixtures can help to make a room feel more current and updated.
  • Update hardware – replacing faucets and cabinet handles can create a totally new appearance in the kitchen or bathroom. If replacing is unnecessary or out of your budget, make sure to polish these pieces.
  • Efficiency upgrade – add storm windows and ceiling fans. Many buyers appreciate homes that offer energy efficient renovations.

Weekly Mortgage Rate Update

In a packed week, the two big economic reports were the main drivers of mortgage rates. The outperformance of the GDP data relative to expectations first rocked the bond market & rates earlier this week however the small miss in the Employment report today caused the bond market & rates to rally ending the week flat. This week's Fed meeting contained no surprises and had little impact.

Big Changes Coming August 16th for Conforming Buyers (up to $625,500 loan amounts). With 20% down payments, it used to be a 2 year waiting period to purchase again after a short sale however effective August 16th this is increasing to 4 years after a short sale.  Buyers on the fence that have had short sales sooner than 4 years the window may be closing for them with Conforming loans. 
THIS WEEK'S RATE TREND IS FLAT
Loan Amounts under $417K, Shown as Note Rate / (APR)
Conforming 30 year fixed: 4.250% / (APR 4.310)
FHA 30 Year Fixed: 3.750% / (APR 5.265)
Conforming 5/1 ARM: 3.000% / (APR 3.044)
Conforming 7/1 ARM: 3.375%      / (APR 3.359)

Loan Amounts over $417K up to County Limits, Shown as Note Rate / (APR)
High Balance Conf. 30 Year Fixed: 4.375% / (APR 4.523%)
FHA High Balance 30 Year Fixed: 3.875% / (APR 5.492)
High Balance 5/1 ARM: 3.500% / (APR 3.189)

Loan Amounts Exceeding County Limits, Shown as Note Rate / (APR)
Jumbo 30 Year Fixed: 4.125% / (APR 4.210%)
Jumbo 5/1 ARM:  3.000% / (APR 3.044%)
Jumbo 7/1 ARM: 3.500% / (APR 3.289)
Jumbo 10/1 ARM: 3.750% / (APR 3.559)

Loan Limit Snapshot

Conforming
All Counties: $417,000

High Balance Conforming
Santa Barbara: $625,500
Ventura: $598,000
San Diego: $546,250
LA/Orange: $625,500
High Balance FHA
Santa Barbara: $625,500
Ventura: $598,000
San Diego: $546,250
LA/Orange: $625,500

Kelly Marsh
Branch Manager
805-563-1100 ext. 106
  


Licensed by the Department of Corporations under the California Residential Act License #813G136.  Subject to applicant and property qualification and availability of funds. Subject to change without notice. Rates and terms apply only to subject programs. Unless otherwise noted, rates shown are based on the purchase of a primary residence with one point loan origination. Rates vary by situation, so please call for a personalized rate quote.  This is intended to be informational to the real estate industry only and is not to be used with respect to an individual consumer who may be seeking mortgage credit, as certain information is not included, such as the APR.  Registered with the Nationwide Mortgage Licensing System and registry, NMLS #245822.