Navy Fellas Realty Group

Real Estate, Residential sales and purchase

Sales of Pre-Owned Homes Hit Second Highest Level in 8 Years

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Sales of Pre-Owned Homes Hit Second Highest Level in 8 YearsHousing markets show continued strength as the National Association of Realtors® reported that sales of existing homes reached their second highest level since February 2007. Sales of pre-owned homes increased by 4.70 percent and reached 5.55 million sales on a seasonally adjusted annual basis against analyst expectations of 5.34 million sales and August’s reading of 5.30 million sales of previously owned homes.

August’s reading for existing home sales was revised downward from 5.31 million sales. Economists said that August’s lower than expected sales of existing homes may have been influenced by volatility in financial markets and concerns over mortgage rates may have kept would-be home buyers on the sidelines, but September’s reading showed that August’s dismal readings were an aberration rather than a trend.

Higher Home Sales Driven by Low Mortgage Rates

Low mortgage rates are making homes more affordable, a fact that’s reflected by current inventories of available homes. At the current sales pace, there is a 4.8 month supply of available homes as compared to September 2014’s reading of a 5.40 month supply of available homes. 

In addition to average mortgage rates hovering below four percent, industry advocates s cited stronger job markets and also indicated that a slight easing of mortgage credit standards are driving home sales. Increased demand for homes is causing home prices to rise. The national average price of a home rose to $221,900, which was 6.10 percent higher than for September 2014.

Housing Recovery: 2015 Could Show Best Results Since 2007

Lawrence Yun Chief Economist for the National Association of Realtors® said that although some economists expect home sales to cool down before the end of 2015, it’s possible that 2015 will end with the best home sales figures since 2007. Mr. Yun said characterized the housing recovery as “a slow steady process” and said “This year, it’s finally coming out.”

On the other hand, some analysts are skeptical about how housing markets can maintain their momentum into 2016. First-time buyers are losing market share in home sales, with their participation rate decreasing from 32 percent in August to 29 percent in September. First-time buyers play an integral role in housing markets, as their purchase of starter homes allows first-time homeowners to buy larger homes. First-time buyers also represent new demand for homes, which is essential to expanding housing markets.

Squeezing a Seller: 3 Tips to Help Bring a Seller’s Price Down to Fit Your Budget

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Squeezing a Seller: 3 Tips to Help Bring a Seller's Price Down to Fit Your BudgetIf you’ve been searching the real estate market for a while and you’ve finally come across a home that you love, it’s possible you may be ready to pounce at any price. However, if you’re hoping to bring the seller’s price down for a deal that’s closer to what you want to spend, here are some ways you may be able to have your home and pay the right price too.

Get Some Background on the Sale

It’s important to realize that by understanding the motivation of the seller, you’ll be better able to give them the kind of deal they’re looking for. So, instead of going into it blind, ask questions to try and determine why the home is on the market. If the motivation happens to be time-related, and the current owners are moving to a new city or have purchased another home, you may have some leeway in terms of what you’re offering. By knowing the motivation ahead of time, you’ll be able to better align your offer with the seller’s expectations.

Research the Surrounding Market

This will definitely be something that a real estate agent should help you with, but utilizing a Comparative Market Analysis (CMA) will enable you to determine the sale price of houses in the area and should give you an idea of what constitutes a reasonable offer. While it’s important that this compendium is made up only of properties that have successfully sold in the local neighborhood, this can easily reveal if the seller’s price is standard and should give you insight into what the limitations in your offering price should be.

Consider a Quicker Close

It can seem like real estate all comes down to price, but there are a number of things you may be able to offer the home seller that may make them seriously consider a lower offer than they were hoping for. Instead of thinking only in terms of price, you may want to suggest a closing date that is sooner than usual; in the event that they’ve already purchased a home this will work out better for them in terms of cost savings and may make up for a difference on price.

If you’ve found your ideal home after viewing a lot of houses and you’re wondering how you can make it a better deal, you may score a lower price by being aware of a seller’s motivations or offering a quicker closing date. If you’re curious about other tips for real estate success, you should contact your trusted real estate agent for more information.

Can You Give a Relative a Gift of Cash for a Mortgage Down Payment? Yes – Here’s How

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Can You Give a Relative a Gift of Cash for a Mortgage Down Payment? Yes – Here’s HowA new house is a major investment. Even if you have a mortgage, the bank and the seller will still expect a sizeable down payment. That’s why lots of people regularly gift down payments to friends and relatives – it’s a great way to help young people start out on the path of home ownership.

But what are the rules around gifting down payments? Can you simply give someone everything they need? Although it’s a generous thought, it’s not always possible – here’s what you need to know.

Make Sure You Write a Gift Letter

If you’re giving one of your relatives money for a down payment, you’ll need to accompany the money with a gift letter. A gift letter is a letter written to the mortgage company that clearly asserts the money is a gift, not a loan. There are several key components that mortgage companies need to see on a gift letter, so make sure you have everything they need.

You’ll need to include your name, address, and phone number, as well as your relationship to the homeowner and the amount of the gift. Your letter should list the date on which you gifted the money and clearly explain that you do not expect to be repaid. Finally, you’ll need to include the address of the property being purchased and then sign the letter.

Tell Your Relatives to Pay the Right Down Payment Amount

When your relatives give their down payment, they’ll want to ensure they pay the right amount from their own money to ensure they don’t run afoul of any mortgage laws. In a conventional mortgage agreement, the borrower can pay the entire down payment with a gift if their down payment is worth at least 20% of the purchase price. If the down payment is for less than 20%, then the borrower can use gift money, but must also put forward a certain minimum amount that varies by loan type. For mortgages insured by the Federal Housing Administration or the Department of Veteran Affairs, the rules are slightly different.

Giving the gift of a mortgage is a great way to help friends or family members become homeowners. But with mortgages, there are strict rules around gifts. Contact your trusted real estate professional or mortgage officer to learn more about giving the gift of a mortgage.

Don’t Fear the Last Minute Home Showing – Here’s How You Can Impress Potential Buyers

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Don't Fear the 'Last Minute' Home Showing! Here's How You Can Impress Potential BuyersThe idea of impressing potential buyers can be a matter rife with stress, but there are a few things you can do before a viewing to ensure your home is seen in the best light. If you’ve recently put your house on the market and you’re looking for some fast and easy fix-ups, here are a handful of ways you can be sure to create a positive first impression.

It’s All About the Smell

It may seem like purchasing a home is all about appearance, but you shouldn’t underestimate the power of scent when it comes to the overall impact of your home viewing. Instead of leaving this invisible factor up to chance, consider giving the house a quick light spray with a pleasant scent or even baking something that will be sure to remind potential buyers of the familiar comforts of home. Make sure you dont over do it though, having too much sent may make potential buyers uncomfortable or even sick.

Take Away the Family Portraits

While it won’t be necessary to clear away everything of personal value, a large number of photographs in the home can actually remind potential homebuyers that it’s not their home and may make them feel like they’re a visitor in a place they want to live. By removing the photos that adorn the fridge and the side tables, you can eliminate distractions for potential homebuyers and keep them focused on what the home might come to mean for them.

Clear Away Any Clutter

This might seem like the most common sense of points, but it’s very important that your house is clean so that viewers can see your home in its best light and will easily be able to imagine themselves living in it. While it’s important for giving your house the best possible presentation, it will also make your house look more spacious than it would with a lot of unkempt clutter.

Highlight Your Favorite Features

With potential homebuyers viewing a lot of different houses, having a few key features in your home that will help it stand out from the pack can be a definite benefit. Whether you have a fabulous Jacuzzi in the master bathroom or unique kitchen tiles that you installed yourself, ensuring that these features are noticed, and even accentuated, may help your home stick in the mind of its viewers.

Showing your home can be a stressful matter, but a few quick tips can ensure success with potential buyers. If you’re curious about other ways to impress viewers of your home, you may want to contact your trusted real estate professional for some valuable insights.

What’s Ahead For Mortgage Rates This Week – October 19, 2015

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Whats Ahead For Mortgage Rates This Week October 19 2015Last week’s economic reports included Consumer Price Index and Core index for September, the minutes of the FOMC meeting held September 15 and 17, and weekly reports on mortgage rates and new jobless claims. The details:

FOMC Minutes Hint at Looming Rate Hike as Inflation Lags

Minutes of the Federal Open Market Committee meeting held in September suggest that while Fed policy makers have reservations about low inflation and labor markets, they may go ahead and raise the target federal funds rate from its current range of 0.00 to 0.25 percent. When the fed does raise rates, consumers can expect to see higher mortgage rates as well as loan rates on products such as personal loans and credit cards. FOMC members also expressed concerns over lagging inflation below the FOMC benchmark of 2.00 percent.

September’s Core Consumer Price Index report showed a slight reduction as consumer prices fell by -0.20 percent which matched analyst’s expectations and was lower than August’s reading of -0.10 percent. The reduction in consumer prices was caused by falling fuel prices. The Core Consumer Price Index for September, which does not include readings for energy or food prices, rose by -0.20 percent which exceeded predictions of an 0.10 percent increase and August’s reading of +0.10 percent.

Mortgage Rates Rise as New Jobless Claims Fall

Freddie Mac reported that fixed mortgage rates rose while rates for a 5/1 adjustable rate mortgage held steady last week. The average rate for a 30-year fixed rate mortgage rose by six basis points to 3.82 percent while the average rate for a 15-year fixed rate mortgage rose by four basis points to 3.03 percent. The average rate for a 5/1 adjustable rate mortgage was unchanged at 2.88 percent. Average discount points were unchanged at 0.60 percent for fixed rate mortgages and 0.40 percent for 5/1 adjustable rate mortgages.

New jobless claims fell to 255,000 against expectations of 270,000 and the prior week’ reading of 262,000 new claims. The four-week rolling average of new claims fell by 2250 new jobless claims and reached its lowest level since 1973.

In other jobs-related news, job openings fell from July’s reading of 5.70 million to 5.40 million in August. The Labor Department also reported that the hiring rate and quit rates held steady at 3.60 percent and 1.90 percent.

What’s Ahead

This week’s scheduled economic news releases include The National Association of Home Builders Housing Market Index, September Housing Starts and Existing Home Sales in addition to usual weekly reports on mortgage rates and weekly jobless claims.

DIY Home Upgrades: 5 Reasons Why Hardwood Flooring Should Be on Your Renovation List

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DIY Home Upgrades: 5 Reasons Why Hardwood Flooring Should Be on Your Reno ListWhether you’re planning on selling your home soon or you want to do a few minor renovations for your own enjoyment, an ailing hardwood floor may be on your list of things to tackle. While this can be a more difficult renovation to complete than many other household items, here are five reasons you may want to move it to the top of the list.

An Issue with Structure

If there happens to be any glaring structural issues with your hardwood, a complete do-over will be a necessity if you want to sell your house in the future. While this will likely involve fixing the sub-floor under your hardwood, this will dramatically improve the overall health of your home.

Experiencing a Lot of Movement?

A lot of movement in your hardwood floor can be a sign that it’s time for a fix up. If you’re already planning on refinishing your floor for an instantly improved look, this fix-up will need to happen before you can take that necessary next step!

Worn-Out or Over-Sanded Wood

Whether your boards are worn down in spots from excessive use or sanding, this is an issue that will instantly age the look of your living space. If you’re noticing the boards coming apart at the ends or nails jutting out, it’s definitely time for an overhaul.

Upping a Home’s Market Value

There may be a few things a homebuyer will be willing to fix in a new home, but flooring is unlikely to be something they will want to replace right off the bat. By upgrading this before it’s an issue, you can easily make your home a lot more attractive to potential buyers.

It’s an Instant Facelift

There are few things that will be as apparent as the look of the floor when entering a room, so having dull, scratched hardwood will instantly downgrade the appearance of your living space. If more than expected wear and tear has occurred, an updated floor can completely shift the look of your place!

If you’re planning on tackling home renovations soon and are not sure where to begin, you may want to assess the quality of life left in your hardwood floors. As this will have a marked impact on the way your home appears, fixing your floors can help to improve the market value of your home. If you’re wondering about other renovation upgrades that will appeal to buyers, you should consider contacting your local real estate professional for more information.

How Much Should You Budget for Closing Costs? Let’s Take a Look

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How Much Should You Budget for Closing Costs? Let's Take a LookIf you’re in the market for a new home, you’re probably trying to budget for all of the expenses that come with a home purchase. After all, the asking price isn’t necessarily the entire amount that you’ll pay – there are other expenses that will factor in to the final price. One such expense is your closing costs.

Closing costs are the miscellaneous fees you’ll pay when you sign the deal to buy your home. But how much do you need to save up for closing costs? Here’s what you need to know.

The General Guideline for What to Expect

Most mortgage advisors will tell you that you should expect to pay about 3 to 5 percent of your mortgage in closing costs. By law, your mortgage provider is obligated to give you a Loan Estimate form which is designed to help you understand the key features, costs, and risks of the mortgage loan. Three business days before the loan closes your mortgage provider will also give you a Closing Estimate form to review all of the costs of the transaction including all closing costs.

How Your Closing Costs Break Down

Your lender will give you a breakdown of costs in your Loan Estimate and Closing Estimate. But in general, there are certain closing costs you can expect to pay.

One cost that most lenders include is the loan origination fee, a small charge to compensate the lender for the time it takes to prepare the initial loan documents. There will also typically be a loan application fee, which can vary per lender.

Your lender may require you to get private mortgage insurance depending on your situation. The title search and title insurance to protect your lender from title fraud is another fee you should consider, and you’ll also likely want to buy title insurance to protect yourself.

There are also several other closing costs to keep in mind, like escrow fees, notary fees, pest inspections, underwriting fees, and the mortgage broker’s commission. All in all, you’ll want to budget approximately $5,000 in closing costs for every $100,000 you borrow.

Closing costs can be quite expensive, which is why you’ll want to make sure you budget appropriately when you buy your new home. A real estate professional help you to figure out how much you need to budget for closing costs. Call your local real estate agent today to learn more about the home buying process.

Do You Regret Turning Down an Offer? How to Reopen Talks with a Potential Home Buyer

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Do You Regret Turning Down an Offer? How to Reopen Talks with a Potential Home BuyerThe real estate market is in a state of constant flux, and if your home has been for sale a little while you may feel vulnerable if you’ve recently rejected an offer. If you’re starting to change your tune on what you want and you’re wondering how you can re-make a deal, here are a few pointers for how to approach a new negotiation.

Did You Do a Follow-Up Call?

One of the rules for selling your home is to follow-up with all potential buyers as a matter of courtesy, whether you’ve accepted their offer on your home or not. If you’ve done this with a potential buyer you want to re-negotiate with, then you’re in a good position to contact them. Whether you choose to do this directly with the buyer or through your real estate agent, make sure that you know exactly what you want to say so the second time around can be more promising for both parties.

Re-Consider the Buyer’s Point of View

If you’re contemplating a former offer, looking at the way the buyer sees things may help you come to more of a consensus in terms of price. While you’ve paid for your property, and you’re aware of all that you’ve invested into it, a buyer may be looking simply at the going price of other properties in the area. By re-considering the market value in your area and being clear on the buyer’s concerns regarding your price-point, it’s possible you may be able to meet somewhere closer to the middle when it comes to a renegotiated price.

Be Prepared to Change Your Tune

You likely won’t be able to successfully negotiate anything with your potential buyer unless you and your family re-consider your asking price. While re-negotiating an offer that seems unfair certainly isn’t something worth stressing over, you’ll want to think about what the additional money you might be making is worth and if the difference is going to make up for potentially having your house on the market for a few more weeks or months. If it’s worth it to you to re-negotiate, you may just have home sale on your hands in short order

Selling a home can be a matter of significant stress, and missing out on an offer can add even more difficulty to the proverbial pile. Whether you’re wondering how you can renegotiate an old offer or successfully sell your home, you may want to contact your local real estate agent for more information.

What’s Ahead For Mortgage Rates This Week – October 13, 2015

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Whats Ahead For Mortgage Rates This Week October 13 2015Last week’s economic reports included the Federal Open Market Committee Meeting Minutes and Weekly Jobless Claims. Also, the new mortgage TRID rules went into effect. Here are the details:

TRID (TILA-RESPA Integrated Disclosure) Goes Into Effect

TRID, or TILA-RESPA Integrated Disclosure, which is also known as the “Know Before You Owe” rule will change the mortgage process by altering some standard loan forms and practices. Originally slated to go into effect August 1, the Consumer Financial Protection Bureau (CFPB) actually took effect on October 3.

On Wednesday, October 7, 2015, the House of Representatives approved HR 3192, “The Homebuyers Assistance Act”, which would provide a safe harbor for lenders who act in good faith to comply with the new TRID mortgage disclosure requirements. The bill will still need to be passed by the US Senate and signed by the President in order to become law.

Home buyers can expect to be using two new forms under TRID — the Loan Estimate and the Closing Disclosure. These two new loan forms are easier to understand and consolidate the earlier standard forms. The forms are also designed to work in combination with each other, which wasn’t happening with the previous forms.

The new forms clearly detail the loan amount, its terms, whether the amount can increase after closing for each section, and the feature of the loan, such as whether there is an early payment penalty or not.

The forms are designed to provide the buyer with more time to review the costs associated with the mortgage. The Loan Estimate document is due to the buyer three days after applying for the loan, while the Closing Disclosure must be presented three days before closing.

The CFPB has offered a special guide for real estate professionals.

Real Estate Professionals Guide (http://www.consumerfinance.gov/know-before-you-owe/real-estate-professionals/)

Mortgage Rates Tick Downward

Freddie Mac reported that the average mortgage rate for a 30-year fixed rate mortgage dropped lower to 3.76 percent from 3.85 percent the previous week; the average rate for a 15-year fixed rate mortgage was also lower at 2.99 percent. The average rate for a 5/1 adjustable rate mortgage was unchanged at an average rate of 2.88 percent. Average discount points for both fixed rate products was.6 percent while the discount points for the adjustable product was.2 percent.

Jobless Claims Fall To 42-Year Low

New unemployment claims dropped to 263,000 against expectations of 271,000 new jobless claims and the prior week’s reading of 277,000 new jobless claims. Some experts argued that the drop may have had to due with seasonal employment trends. The U.S. labor-force participation rate was reported at a 38-year low at 62.4 percent in September.

3 Autumn-inspired Decor Ideas That Will Spice Up Your Home

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3 Autumn-inspired Decor Ideas That Will Spice Up Your HomeWith the season of jack-o-lanterns and crunchy leaves under foot, there can’t help but be plenty of ways to integrate the loveliness of autumn into your home decorations. Whether you’re looking for a simple touch or a statement that will completely define a room, here are a few ideas for highlighting the best the fall has to offer.

Showcase a Seasonal Bouquet

A vase full of flowers can add a lot to any room in the house, but a great way to integrate the season outside with your home is to make a bouquet that will utilize the best of fall’s vegetation. Instead of opting for the usual bright colors, gather an array of colored leaves that strike your fancy and add a collection of branches to a vase that suits the purpose. If arranged right, this can be a striking and unique embellishment to your front entrance.

Carve Out a Candle Holder

An easy way to join the cooler weather with your inside atmosphere is to utilize the help of the season’s most familiar vegetable, the pumpkin. Instead of going for the typical Halloween carving, cut the top off of a small pumpkin, clear away all of the seeds and let it dry out. Once this is complete, you can put a candle in the pumpkin, and create a unique lighting look for your home. If you like it enough, you may want to consider doing it with several pumpkins for an even more festive display.

A Falling Light Fixture

Instead of making something from scratch, you might want to consider using the pieces you have in your home and switching them up to complement the changing season. If you happen to have a chandelier in your dining room and you also have kids who like to craft, have them put together some papier-mâché leaves and pumpkins so you can hang them decoratively from the chandelier. While this is a look that will take more work, it will be a particularly striking way to illuminate your chandelier – and your dining area!

Adding some fall inspiration into the mix for your home decorating can be a great way to better enjoy the season and have some fun with your family. From a festive chandelier to a striking autumn bouquet, there are plenty of ways to become crafty for the fair season. If autumn is making you contemplate your neighborhood and your home, you may want to contact your local real estate agent for more information.