Interest Rates Rising

Did the new rates price you out of the market you were searching in? Even 1% tick upward can reduce your buying power by $75,000!  But don't let that discourage you. Why not consider a 5 year fixed rate loan at a lower than standard interest rate, which will enable you to buy more?
For conventional loan the rate is 4.375%, but 5 year fixed is 3.34%.  That's a whole point less.  So on a mortgage of $400,000 the payment difference is $1997.14 vs. $1760.64!  You save $230 per month.  You can look at buying a bigger house.
This loan is especially good for those that plan on buying up in the future.  They know this home is temporary and they will be outgrowing it, or just wanting to step up to something bigger and nicer.
So don't be discouraged.  Especially now that the guerilla warfare is over, and houses are sitting longer on the market you don't have to be in such a panic.  No need to compromise.  Find the perfect property, make a good offer, and be happy!!

Should you overprice or underprice your listing?

Banks started to use the strategy to underprice their listings to create a plethora of buyers, and that feeding frenzy mentality.  This may have worked for a while, but buyers are tired, sick and tired of writing offer after offer and getting rejected.

And the fact that the market has changed due to interest rate increases, should you use this strategy of overpricing?  When an agent shows your property and the buyer decides to write an offer, the first thing the agent does is pull the comps.  They have to convince the buyer that your home is worth the asking price.  If they see that is has been overpriced, they will tell the buyer 1 of 2 things; this house will never appraise therefore you will be wasting your time trying to get a loan on it, or 2, they may say, 'since this seller appears to be unreasonable I think we should move onto another property'.  Either discussion loses you a potential offer.

Better to be priced at market value, and leave only a slight margin for negotiation, than be price too high and never see an offer.  Buyers today do not want to pay over market value.  They are done with that war scene.  So if you are anxious to sell, be fair, price fair, and you will get a fair offer.

What home improvements bring the most return?

Seller's often ask, "what improvements to my home will bring me the best return?"  I always say, kitchens sell wives, garages sell husbands.  If you have an amazing updated kitchen with top of the line appliances, granite counters with lots of cabinet space, you will capture the fancy of the woman shopper.  Men love garages with tons of storage, work area for projects and tools, and enough space to walk around the car.  Putting some planning into these two spaces can have big rewards.

 

Also, from a poll of buyers, decks are another feature that bring big returns.  You will most likely get every penny you spent on a deck back in sales price.

 

Most importantly when preparing to sell your home is cosmetics.  Fresh bright paint throughout the home in the same color, or at least the same color scheme, with new flooring, neutral window coverings, such as wood blinds, and a detailed thorough cleaning can capture the attention of most buyers.

 

Outside a well maintained garden, neat and trimmed, green and with a splash of flowers for color, and a freshly painted front door will do wonders for curb appeal.

 

The idea is to show pride of ownership.  People prefer properties that look like they have been maintained.  This could net you thousands more than the competition that is not to par.  Fixers take a beating when it comes to offers.  Buyers will inflate the costs to repair and hit you hard on your sales price.  Better to spend a few thousand preparing your home to sell and net tens of thousands more, than to sell as-is and have to reduce by tens of thousands.

Interest Rates Effecting Sales

Yikes! Interest rates went up 1% from 3.5%-4.5% and this definitely put the brakes on for many buyers.  Even though this is still an historically low rate, buyers who feel like they missed the window of opportunity stopped shopping.  Once they figure out that rates are not going to come back down, but may indeed keep crawling up they will be back.

Homes are now sitting on the market for 30+ days, and are seeing some price reductions.  So sellers it's not the same frenzied market and you have to price your home realistically.  The panick buying period has come to an end for now.  So don't over price your home and cause it to sit on the market too long, as this will cause buyers to wonder, "what is wrong with THAT property".  Price it according to the comps so it will appraise and your deal will close.