It Can’t Hurt to Wait, Can It?

Posted on July 29, 2013 by sgrassmu

It’s been said that more money has been lost due to indecision than was ever lost because of a bad decision. Regardless of whether you agree with the statement, delaying the decision to buy in today’s market is going to cost the buyer more.

Home prices have gone up considerably in almost every market in the country in the past year and while inventories are beginning to grow, prices are expected to continue to rise. Mortgage rates jumped 1% from the beginning of May to now. They could easily reach 5% by the end of the year and continue to rise in 2014.

Many of the financial experts in the country believe that the economy will not be strong until rates are in the 7% area.

The two components that move the cost of housing are price and mortgage rates. Escalation of either one will have an affect but when both are going up simultaneously, it is dramatic. It can literally eliminate buyers who could have purchased earlier.

The following example shows what would happen to the payments on a $200,000 home if the price were to go up 3% at the same time that the mortgage rates went up 1%. Not only would the payments go up by $150.81 per month, the price of the home would be $6,000 more. Even though the down payment may not change much, the new owner would have to borrow more money. By not acting, it is costing them more in price and payment. The loss of the appreciation would have been equity had they purchased prior to the rise in price.

If I’d Known…

Posted on July 22, 2013 by sgrassmu

We’ve probably all said or at least thought “if I knew then, what I know now, I would have done things differently.” We should have stayed in school longer. We should have listened to our parents. We should have bought Apple stock in 2002 for $8.50 that sells for $400 today. Or we could have bought gold in 2000 for under $300 for a four-fold profit today.

Years from now, if we look back at 2012, we may say that it was the best buyer’s market ever. Even now, in 2013, it’s apparent that both housing and mortgage prices are going up and they may never return to the record low levels.

The housing affordability index, which is considered to be good at 100, had increased to over 200 this past December, January and February. Shrinking inventories and rising prices in most markets have caused the index to fall to 172.7 for May 2013.

This market applies equally to acquiring a home to live in or a home to use as a rental. It is estimated that about 30% of the property purchased last year was done by investors. It is understandable because the positive cash flows far exceed most other investment alternatives.

Homeowners moving up in a rising market may sell their home for more by waiting but it will also cost them more for a new house. Typically, a person buys a 50% larger home when they move up. If they wait for prices to go up 10% on the $150,000 home they’re selling, they’ll realize $15,000 more but will pay $22,500 more for the new home purchase. They’ll actually net $7,500 less by waiting for prices to go up and may have to pay a higher mortgage rate too.

The question homebuyers and investors alike are faced with today is whether they will be saying years from now that they seized or missed an opportunity of a lifetime.

Breathe Easy

Posted on May 20, 2013 by sgrassmu

The benefits of regularly changing the heating and air-conditioning filters are obvious to homeowners; the real challenge is creating a system to make sure it gets done. A reasonable schedule would be to replace it with a new one-inch pleated filter every 60-90 days. Households with shedding pets should consider replacing them every month. Some people change their filters every month when they pay their electric bills. A simple system would be to set a recurring appointment on your calendar like Outlook or Google. Filters trap dust, mold and bacteria which can directly affect the air quality and play havoc with your allergies. When a filter is dirty, it prevents proper airflow and allows dust, dirt and allergens to blow through your home. Changing your filter regularly helps to avoid maintenance, improves equipment life and produces increased energy savings. When shopping for filters, it’s understandable to look for the best bargain but the cheapest price may not be the best choice. When purchasing, recognize that HEPA-rated and HEPA-type filters are not the same thing. HEPA stands for high-efficiency particulate air. A HEPA filter meets or exceeds standards for efficiency set by the U.S. Department of Energy. Most HVAC contractors recommend HEPA filters. Some filters need to be changed monthly and other types have manufacturer recommendations of every three months. An alternative to disposable filters are the permanent, washable types. These will cost more initially but because you can clean them and re-use them, eventually, you’ll recapture the cost and realize savings.

Please take our offer!

Posted on May 15, 2013 by sgrassmu

“Please take our offer…”

It’s interesting that the housing climate has changed so quickly. Some buyers, who think they’re still in the driver’s seat, find the market is now going up and they’re losing the home that they really want.

Multiple offers are increasingly more common and buyers are frustrated because even full-price offers don’t guarantee that they’re going to get the home. In an effort to personify a contract offer and add emotional appeal, buyers are including a personal letter to the seller.

In most cases, the seller wants to maximize the net proceeds from the sale by getting the highest price with the least expenses and an assurance that the home will actually close on time without surprises. When a seller is faced with multiple offers that may be close to the same net, an emotional appeal might make the difference in them accepting a particular offer. That’s where the letter comes in play.

It should be a relatively short letter that gets to the point. The tone of the letter should be humble while positive and definitely, shouldn’t mention that you may have lost other homes due to multiple offers.

Try to identify a common feature or characteristic of the home that is important to the seller and you.
Don’t criticize the home or tell them about all of the improvements you need to make to justify your offer.
Do verbalize why living in this home is important to you and your family.
Assure the seller that you can indeed qualify for the home and that if they accept your offer, the sale will be consummated.

After writing the letter and eliminating the non-essential parts, read the letter a few times to your spouse or friend. Polish the verbiage and check the spelling and grammar. If your handwriting isn’t attractive and easy to read, print it. Use nice paper to appeal to the tactile senses. Attach the letter to the offer so they’re considered simultaneously.

Being pre-approved with good credit, adequate financial resources, good employment, sufficient earnest money and a reasonable offer with minimum contingencies will favorably position you. A personal letter might be the deciding factor in your favor.

Cut Refinancing Expenses

Posted on April 29, 2013 by sgrassmu

Every single day, homeowners who are excited about lowering their rate have a tendency to ignore the refinancing costs because they’re being rolled back into the new mortgage. If the payment is lower than what they’re currently paying and there’s no money out of pocket, it seems like a good deal.

Refinancing your home because a lower rate is available is one thing but the closing costs associated with that new loan could add several thousand dollars to your mortgage balance. By following some of the suggestions listed below, you may be able to reduce the expense to refinance.

• Tell the lender up-front that you want to have the loan quoted with minimal closing costs.
• Check with your existing lender to see if the rate and closing costs might be cheaper.
• If you’re refinancing a FHA or VA loan, consider the streamline refinance.
• Shop around with other lenders and compare rate and closing costs.
• Credit unions may have lower closing costs because they are generally loaning deposits and their cost of funds is less.
• Reducing the loan-to-value so that mortgage insurance is not required will reduce expenses.
• Ask if the lender can use an AVM, automated valuation model, instead of an appraisal.
• You may not need a new survey if no changes have been made.
• There may be a discount on the mortgagee’s title policy available on a refinance.
• Points on refinancing, unlike purchase, are ratably deductible over the life of the loan.
• Consider a 15 year loan. If you can afford the higher payments, you can expect a lower interest rate than a 30 year loan and obviously, it will build equity faster and pay off in half the time.

A lender must provide you a list of the fees involved with making the loan within 3 days of making a loan application in the form of a Good Faith Estimate. Every dollar counts and they belong to you.

Tips for An Allergy-Free Home

Posted on November 26, 2012 by sgrassmu

Make life easier for allergy sufferers by trying these household tips.

Source: HGTV.com

Sandy Grassmuck has been in the real estate industry since 1999. Her experience includes Commercial Property management, residential property management, home
owner association management, real estate accounting, sales, extensive
experience with real estate investment property and investors.

She is the founder, facilitator and host of the only Real Estate Investment
Convention in the St. Louis Area, The Real Estate Extravaganza. Currently
the owner/managing broker of Grassmuck Realty, she also holds the following
designations: GRI, ePRO, SFR, Short Sales Foreclosure Resource Certificate and
BPOR, Broker Price Opinion Resource Certification. She was honored with
the Five Star Agent Award from St. Louis Magazine in 2011 and Beyond the Best
2011, top 50 businesses in St. Charles County by Streetscape Magazine.

For more information about Sandy’s real estate services visit: www.grassmuckrealty.com or call 314-486-8333.

Kitchen Redesign and Staging

Posted on November 7, 2012 by sgrassmu

An elegant kitchen redo and a few staging tips give this home an edge. This video is part of Designed to Sell show hosted by Clive Pearse . Designed to Sell shows how to turn a tired house into a showpiece by giving sellers a $2,000 budget and a team of experts to transform their house into the hottest property on the block. Find out if all the hard work pays off with the ultimate goal: a bigger bottom line. Chock full of interior-design ideas, home-improvement tips and real estate insider secrets, Designed to Sell has something for everyone.

Source: YouTube.com

Sandy Grassmuck has been in the real estate industry since 1999. Her experience includes Commercial Property management, residential property management, home owner association management, real estate accounting, sales, extensive experience with real estate investment property and investors.

She is the founder, facilitator and host of the only Real Estate Investment Convention in the St. Louis Area, The Real Estate Extravaganza.

Currently the owner/managing broker of Grassmuck Realty, she also holds the following designations: GRI, ePRO, SFR, Short Sales Foreclosure Resource Certificate and BPOR, Broker Price Opinion Resource Certification. She was honored with the Five Star Agent Award from St. Louis Magazine in 2011 and Beyond the Best 2011, top 50 businesses in St. Charles County by Streetscape Magazine.

For more information about Sandy’s real estate services visit: www.grassmuckrealty.com or call314-486-8333.

What is Your Home Worth?

Posted on October 25, 2012 by sgrassmu

Your Home’s Market Value
Online For Free

Your Professional Evaluation
Will Include…

Prices and Details of Properties that
appraisers, lenders and banks use in their
valuations…
A Professional Estimate of your Home’s Current Value
The MOST current information in the market…

Get the same information that lending institutions and appraisers use to evaluate home values and prices along with a professional evaluation so that you know right now what your home is worth today.

You can use this information when talking to lenders, banks, appraisers or Realtors so that you know the true value of your property in today’s market.

This is a great time of year to put your home on the market. Your FREE Home Market Value gives you a competitive edge. Click here to get your valuation NOW!

Sandy Grassmuck has been in the real estate industry since 1999. Her experience
includes Commercial Property management, residential property management, home
owner association management, real estate accounting, sales, extensive
experience with real estate investment property and investors.

She is the founder, facilitator and host of the only Real Estate Investment
Convention in the St. Louis Area, The Real Estate Extravaganza.

Currently the owner/managing broker of Grassmuck Realty, she also holds the following
designations: GRI, ePRO, SFR, Short Sales Foreclosure Resource Certificate and
BPOR, Broker Price Opinion Resource Certification. She was honored with
the Five Star Agent Award from St. Louis Magazine in 2011 and Beyond the Best
2011, top 50 businesses in St. Charles County by Streetscape Magazine.

For more information about Sandy’s real estate services visit: www.grassmuckrealty.com or call 314-486-8333.

Pumpkin Carving!

Posted on October 12, 2012 by sgrassmu

Whether you’re a first-time pumpkin carver or an experienced pro, we’ve got all the resources to help you create a cool carved pumpkin to grab everyone’s attention for Halloween.

Start with the free Halloween face stencils at www.bhg.com — you can download patterns for silly, wicked, and scary faces for your pumpkin, plus stencils for skeleton faces, clowns, and more!

Their creative Halloween pumpkins give you tons of ideas for adding extra accents to your pumpkin to make a clever masterpiece. They have pumpkin carving stencils inspired by home design, dog breed pumpkin stencils, and iconic Halloween pumpkin stencils with vampires, werewolves, and ghosts.

They even show you how their stencils look on carved pumpkins! Once you’re ready to carve your pumpkin, head over to their free printable pumpkin stencils where you’ll find their entire collection of pumpkin carving ideas, plus basics on how to carve a pumpkin and other helpful resources.

If you’re still deciding, take their pumpkin stencils quiz — after a few easy questions, they’ll help you find a favorite pumpkin carving stencil in no time!

Source: Better Homes & Gardens http://www.bhg.com/halloween/pumpkin-carving/