Navy Fellas Realty Group

Real Estate, Residential sales and purchase

First-time Home Buyers: Why Splurging for a Larger Home Beats Condo Living

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First-time Home Buyers: Why Splurging for a Larger Home Beats Condo Living Some first-time home buyers are on a tight budget when making their real estate purchase, and there may be an inclination by many to purchase a smaller property, such as a condo, rather than the home they truly want. While there may be some initial financial benefit associated with buying a smaller property, there are a few benefits associated with splurging and buying a larger home as a first purchase. By analyzing these benefits, first-time home buyers can make a more informed decision about how to proceed.

Costs Associated With Upgrading In The Future

Some people will purchase a smaller property initially with the goal of later upgrading to a larger property. This can provide the home buyer with the initial benefits of building equity, taking advantage of tax benefits associated with real estate ownership and more. However, there are costs associated with selling property, including closing costs, real estate fees, make-ready and improvement costs and more that should be considered.

Benefits Of Long-Term Ownership

For many, there will be a need to have a larger property over the years, such as when starting a family or when young children grow into teenagers who need more space. When the first property purchased is large enough for the family to grow into, the homeowner can enjoy long-term appreciation and equity growth. More than that, the higher value of the property may mean that there is more upside for property appreciation over the years.

Getting Established In A Community

In addition to the financial benefits associated with investing in a larger property initially, there are intangible benefits. Moving into a new home in a few years means that there is a need to get re-established in a community. When a home buyer settles down into a larger home that he or she plans to stay in for many long years or even decades, getting established and settled in the community can begin right away.

These are considerable benefits that can be enjoyed when a first-time home buyer makes a purchase that he or she plans to enjoy for many years to come, but there are other factors to consider. Each person needs to make a decision regarding a real estate purchase that is best for their needs, goals and financial situation, so there is not a best-fit solution that is right for everyone. Those who are thinking about buying their first piece of real estate may consider contacting a real estate professional for assistance with their home hunting efforts soon.

What’s Ahead For Mortgage Rates This Week – June 27, 2022

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What's Ahead For Mortgage Rates This Week - June 27, 2022

Last week’s economic reporting included readings on home sales, Fed Chair Jerome Powell’s testimony on monetary policy to the House Financial Services Committee, and the University of Michigan’s Consumer Sentiment Index. Weekly reports on mortgage rates and jobless claims were also released.

New Home Sales Pace Rises as Pre-Owned Homes Sales Pace Slows

The Commerce Department reported a seasonally-adjusted annual pace of 696,000 new homes sold in May; analysts predicted a year-over-year pace of 587,000 new homes sold as compared to April’s year-over-year pace of 629,000  new homes sold. While the year-over-year pace of new home sales increased by 10.70 percent month-to-month in May, the year-over-year sales pace for new homes fell by 5.90 percent.

Increasing materials and labor costs continued to challenge home builders, but high demand for homes fueled sales of new homes even as mortgage rates and home prices rose.  The median price of new homes sold in May fell to $449,000 from April’s record high of $454,700. The inventory of available homes fell by 7.20 percent in May, which equaled a 7.70-month supply of new homes for sale.

Regional results for new home sales were mixed; sales of new homes fell by -51.10 percent in the Northeast and were -18.30 percent lower in the Midwest. New home sales rose by 12.80 percent in the South and were 39.30 percent higher in the West.

In other news, Fed Chair Jerome Powell spoke on monetary policy before the House Financial Services Committee and explained the Fed’s strategy to ease inflation through a series of interest rate increases intended to cut into consumers’ purchasing power. 

Mortgage Rates Rise; New Jobless Claims Fall

Freddie Mac reported higher average mortgage rates last week as the rate for 30-year fixed-rate mortgages rose by three basis points to 5.81 percent. Rates for 15-year fixed-rate mortgages averaged 4.92 percent and were 11 basis points higher than in the previous week. The average rate for 5/1 adjustable rate mortgages was eight basis points higher at 4.41 percent. Discount points averaged 0.80 percent for 30-ye

ar fixed-rate mortgages and 0.90 percent for 15-year fixed-rate mortgages.

Initial jobless claims fell to 229,000 new filings last week as compared to 231,000 new claims filed in the previous week. Analysts expected 225,000 new jobless claims last week. Continuing jobless claims inched up with 1.32 million continuing claims filed as compared to the previous week’s reading of 1.31 ongoing jobless claims filed.

The University of Michigan’s Consumer Sentiment Index fell to an index reading of 50.0 for June as compared to May’s reading of 50.2 and the expected June reading of 50.2. Consumer concerns over fuel prices and rising inflation eroded consumer confidence in the economy. Readings above 50 indicate that most consumers have a positive outlook on current economic conditions.

What’s Ahead

This week’s scheduled economic reports include readings from Case-Shiller on home prices, pending home sales,  and construction spending. Weekly readings on mortgage rates and jobless claims will also be released.

Avoid These Home Projects If You Are Selling Your House Soon

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Avoid These Home Projects If You Are Selling Your House SoonIf you have paid attention to the housing market recently, you might be thinking about selling your home soon. You might even be thinking about taking on a few remodeling projects in an effort to maximize the return on your investment. On the other hand, not every project will help you turn a profit, and some might even make your house less appealing. Take a look at a few home remodeling projects your should avoid if you plan on selling your house soon.

Remodeling The Bathroom

You might be thinking about remodeling your bathroom to turn it into a miniature spa. While this might be attractive for you, it will not necessarily help you increase the value of your home. Remodeling the bathroom doesn’t generate a huge investment return, and if the plumbing system has to be moved or adjusted, it could delay the sale of your home. Problems often arise, parts are hard to find, and a project that should have taken a week could last a month. Avoid remodeling the whole bathroom if you want to sell your house soon.

Renovating The Living Room

While the living room is often the central area of the home, it is not an area you should renovate if you want to sel your house soon. In addition to being a major project, not every buyer wants an updated living room. Eclectic color choices and odd dimensions that often result from a living room renovation can shrink the number of people who make an offer on your home, depressing your potential sale value. If you leave the living room as it is, you could appeal to a wider market, potentially putting multiple offers on the table.

Reducing The Number Of Bedrooms

Before you take a hammer to the closet, remember that it could reduce the number of bedrooms you have. This could significantly harm the sale price of your house. A creative workshop or art studio might appeal to you, but it won’t appeal to a wide market, particularly people with kids. Those buyers could offer more money. In general, more bedrooms means more money, so keep the bedroom intact.

Consider looking for smaller projects if you want to sell your house soon. 

Staging Tips: How to Make Your Bedrooms One of Your Home’s Best Selling Features

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Staging Tips: How to Make Your Bedrooms One of Your Home’s Best Selling FeaturesTo potential homebuyers, a bedroom is more than just a place to lay your head at night. It’s a place to relax, retreat, and recover, a place where the demands of the busy world are locked out. And with a properly staged bedroom, you can tap into potential buyers’ desire for relaxation and make your home their number one pick.

So how can you stage your bedroom in a way that buyers will love? Here are three strategies you can use to make your bedroom look like a modern oasis – without spending a fortune.

Position The Bed In The Right Place

One easy-to-change yet often overlooked detail in staging the perfect bedroom is the location of the bed. The bed is the focal point of the room, so position it accordingly. If your bedroom has French doors or a large window, positioning your bed directly opposite that amenity will create balance.

Ideally, your bed should have space to walk around it on both sides. If that’s not possible, place it against the longest wall in the room.

Use Neutral Colors And Ample Lighting To Boost Appeal

As a highly personal and intimate space, the bedroom is one area of the home where potential buyers are likely to try to imagine themselves in the space. If your bedroom incorporates loud colors, unique patterns, or poor lighting, it’ll be harder for potential buyers to envision themselves there. What you want is a neutral color and lighting scheme.

Take out any dark curtains and heavy drapes, as they can make the room seem dirty. Swap out your bed sheets with white duvets and covers, and use some solid-colored throw pillows for contrast. Add a lamp to give the room a cozy feel.

Remove Everything That Screams “You”

The point of staging a home is to help potential buyers see themselves living in it – if you can get buyers to picture themselves actually living in your home, they’ll form an emotional connection to it and will be more likely not just to buy, but to bid at or above asking price.

But in order to help buyers see themselves living in your home, you have to make it look as if you were never there. That means the family photographs, books on the nightstand, and exercise equipment has to go.

Home staging is a highly effective way to make your home sell faster – and for more money. And although it may seem like quite the undertaking, an experience real estate agent can make it a breeze. Contact your trusted real estate professional today to learn more about home staging.

You Are A Serious Buyer: How To Show It

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You Are A Serious Buyer: How To Show ItToday, the housing market is as hot as it has ever been. There are many people who are missing out on their dream homes because they are having a hard time competing with countless other people who are in the same position as them. If you want to put yourself in the best position possible to win a bidding war, you might be thinking about paying cash for your home; however, not everyone is in the same financial position. There are a few other ways for you to show a seller’s agent that you are serious about your offer.

Get A Pre-Approval Letter

This is arguably the most important step you need to take if you want your offer to be taken seriously. One of the reasons why sellers like cash offers is that they know that they do not have to worry about the buyer’s financing falling through. If you get a pre-approval letter from a lender, the buyer will know that you already have financing in place. If you want to go the extra mile, get a pre-approval letter from a local lender. If you get a better loan offer from a different lender down the road, you can always switch lenders at that time. 

Be Prepared To Pay Some Closing Costs

Traditionally, the seller is responsible for paying closing expenses; however, if you want the seller to pick your offer, consider shouldering some of those closing expenses. This will not have a long-term impact on your mortgage rate or monthly payment, but it could help you secure your dream home. You do not necessarily need to pay all of the closing expenses, but even paying a small percentage could go a long way. 

Put Down More Earnest Money

A lot of sellers are nervous about what the inspection might show. They don’t want a buyer to back out at the last minute. If you put down more earnest money, you can show a seller that you are serious because there will be a lower chance of you pulling your offer if the inspection reveals a few repairs. You should talk to a real estate professional about how much earnest money you should include for your offer to be considered competitive. 

What’s Ahead For Mortgage Rates This Week – June 21, 2022

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What's Ahead For Mortgage Rates This Week - June 20, 2022Last week’s economic news included reporting on home builder confidence in national and regional housing markets, a post-meeting statement from the Federal Reserve’s Federal Open Market Committee, and Fed Chair Jerome Powell’s news conference. The National Association of Home Builders released its national and regional housing market indices. Weekly readings on mortgage rates and jobless claims were also published.

NAHB Housing Market Indices Reflect Slowing Growth in Housing Markets

June readings from the National Association of Home Builders showed slower growth in builder confidence in current and future U.S. housing markets. The NAHB reported the lowest reading in two years for June’s housing market indices as builder confidence fell for the sixth consecutive month. June’s index reading for the National Housing Market index fell two points to 67 and matched analysts’ forecasts. Readings over 50 indicate a majority of home builders are positive about housing market conditions.

NAHB chair Jerry Konter said, “Six consecutive monthly declines in home builder confidence is a clear sign of a slowing housing market in a high inflation, slow growth economic environment.” Mr. Konter also noted the impact of rising mortgage rates on entry-level and moderate-income home buyers: “Entry-level markets were particularly affected by declines in housing affordability…builders are adopting a more cautious stance as demand softens with higher mortgage rates.” Rising mortgage rates added to builders’ ongoing concerns with high materials costs and shortages of skilled workers.

NAHB’s regional homebuilder indices also declined with homebuilder sentiment in the West falling by nine points; the Midwestern regional index dropped by six points. Home builder sentiment decreased by two points in the South and by one point in the Northeast.

On Wednesday, the Federal Open Market Committee of the Federal Reserve announced that it would raise its benchmark interest rate range by 0.75 percent in its attempts to slow inflation. The Federal Reserve has a dual mandate of maintaining inflation at or near two percent and achieving maximum employment. The Fed is expected to raise its key rate range into 2024 in its efforts to ease inflation.

Mortgage Rates Rise, Jobless Claims Fall

Freddie Mac reported a jump in average mortgage rates last week after the Fed announced its decision to raise its benchmark interest rate range to 0.75 to 1.00 percent. This was the highest federal funds range increase since 1981. The average rate for 30-year fixed-rate mortgages rose by 55 basis points to 5.78 percent; the average rate for 15-year fixed-rate mortgages rose by 43 basis points to 4.81 percent. The average rate for 5/1 adjustable rate mortgages rose by 21 basis points to 4.33 percent. Discount points averaged 0.90 percent for fixed-rate mortgages and 0.30 percent for 5/1 adjustable rate mortgages.

Initial jobless claims fell to 229,000 first-time claims filed last week as compared to the prior week’s reading of 232,000 first-time claims filed and the expected reading of 220,000 new jobless claims filed. Last week’s reading for continuing jobless claims was unchanged with 1.31 million ongoing claims filed.

What’s Ahead

This week’s scheduled economic news includes readings on sales of previously owned homes and testimony by Fed chair Jerome Powell to the Senate Banking Committee and the House Financial Services Committee. The University of Michigan will release its monthly index reading on consumer sentiment and weekly readings on mortgage rates and jobless claims will also be released.