Lee Morof's Real Estate Blog

If you are considering selling your home, you may be wondering if there are things that you can do to increase your sale price. The truth is, you could spend thousands of dollars updating your home, but most homeowners will not want to put in such a large investment without knowing how much it will add to the selling price. Fortunately, there are more affordable things that can be done.

One affordable change to your home that can increase your sale price is to change your kitchen and dining room lighting fixtures. There are a number of reasons why this can work. Here are three of them:

Buyers are Looking for Entertainment Areas in New Homes

One reason that changing your kitchen and dining room lighting fixtures can increase your sale price is because buyers are looking for areas where they can entertain. Most people who are looking for a new home will be thinking about the things they can do with the home, and one of these things is entertaining their friends and family.

Buyers are willing to pay more on homes that have these nicely decorated areas, so updating your kitchen and dining room lighting can help to bring in a bit more money.

The Kitchen and Dining Room are the Center of Family Life

Another reason that people will pay more on a home with new lighting fixtures is because the kitchen and dining room are seen as the center of family life. In this scenario, buyers know that they will be spending a lot of time in these rooms and thus, want to be sure that these areas are nicely decorated.

New Kitchen and Dining Room Light Fixtures Will Brighten Up the Home

Finally, you will want to update the lighting fixtures in your kitchen and dining room because new fixtures can brighten up your home. You might have heard real estate agents talk about how important it is to have bright lights and open window shades during open houses since it can make your home look better. New, brighter lights can also help your rooms look bigger. Sometimes it will all come down to an optical illusion.

For more information on adding new lighting fixtures to your kitchen and dining room in order to increase sales, contact a local real estate professional. They will be able to give you some tips on these rooms and offer information on how you can spruce up the rest of your home before putting it on the market.

Buying a home is a huge step for people who are ready to make an investment in their future. Getting a great deal on a home is just as important and knowing how much to offer could be confusing. It is important to make sure the home seller is not insulted by the lowball offer and is ready to negotiate to make sure everyone wins.

Make a List of Necessary Improvements

One of the best ways to validate a lowball offer on a home is to list improvements that need to be made to the property. If the home needs a new roof or a new heating and air conditioning system, these are reasons to offer less than the asking price. Sometimes a home may also need new flooring, paint, or matching appliances which all cost money. The buyer can make a lowball offer stating additional expenses of making sure the home is move in ready.

Explain Any Issues with the Location

Another option when considering a lowball offer is to point out problems with the location. If the home is on a busy street or close to a manufacturing district, the buyer has legitimate concerns. In the offer, list the potential problems of living too close to fast food restaurants, train tracks, or airports. A less desirable location could equal a great buy on a new home.

Provide Pricing for Comparable Homes in the Area

A knowledgeable real estate agent can help compare homes that have sold in the area. When you are writing up a lowball offer, look at the lower priced homes that have sold in the same neighborhood. A seller will quickly realize that if he wants to sell the home, he will need to accept a reasonable offer or risk letting his house sit on the market for weeks or months.

Consider the Seller’s Reasons for Selling

Finally, the seller’s situation can also be key in getting a good deal on a home. If the seller is desperate to sell because of a job relocation or if he has already bought a new home this can be the perfect reason to make a low offer and take the home off the seller’s hands. Without insulting the seller, the buyer can make an offer for less than the asking price and agree to a quick closing.

Buying a home can be stressful and getting a good deal on the property without insulting the seller can take some negotiating. Working with a knowledgeable real estate agent will make the experience more enjoyable. Call today to make your dreams come true.

If you live in a home with a basement, you may have already started finishing it, or you may have big plans to convert the space into something more usable and practical. When it comes to basement renovations, few projects add as much value and opportunity for entertainment as adding in a basement bar.

A bar is an easy home improvement project to complete, and you can use it for entertaining family and friends. Here’s a quick guide to installing a bar in your basement and turning that dank, dreary room into a great space for making new memories.

Preparing For The Bar Addition

First, you need to select the space that is best-suited for the bar. The ideal space will be an open area near the corner of the room or even near an entryway. The space should allow for seating for at least two or three bars stools, but you may desire a larger bar area.

Most bar areas will have water and electricity features, and it will be easier and less expensive if you choose an area of the room that has these services running through the walls. If water and electricity are easily accessible, you simply have to build a wall and add a counter top to the area. If you cannot complete this work on your own, you can hire a contractor for assistance.

Hiring Contractors For Special Tasks

A fully functional bar area may have overhead cabinetry for storage as well as a small sink to rinse out glasses and to wash hands. In addition, it may have electricity for lighting mounted under the cabinets or for display lights over the seating areas.

While some individuals may have the skills to complete this work on their own, you may consider outsourcing these special tasks to a contractor. This will ensure that the work is completed to code, and it also means the work might be completed sooner than if you tried to do it yourself.

Once you’ve built the bar and hooked up the water and electricity, you simply have to add a few bar stools, stock up on glasses and liquor, and start enjoying the space. A new bar addition will be a welcome feature in your home’s basement, and you can easily get started working on this project today. For more fun and trendy basement renovation ideas, contact a real estate professional in your community today.

As exciting as selling a home should be, there’s no denying that it can be a stressful endeavor for those interested in making their home an attractive option for buyers. Nowhere is this more evident than for homeowners who were former smokers.

While it’s truly commendable to quit smoking, removing the smell of smoke from a home can feel like an impossible task. With that in mind, here are some of the most effective ways to make smoke smell and paint stain removal as effortless as possible.

Make Preparations Beforehand

Cigarette smoke has a nasty habit of permeating through every facet of a home. As such, it can be difficult to pinpoint the areas that are most problematic. Before starting the cleaning process, open all of the doors and windows throughout the home to help it air out naturally.

It’s also worth mentioning that many longtime smokers have difficulty picking up the odor that they’ve become accustomed to. If you know someone that isn’t a smoker, invite them over and ask them to point out any problem areas.

Treat Your Home Like a Quarantine Zone

Unfortunately, a home that is infested with smoke can create a cyclical effect on anything that is washed. If you want your clothing and linens to stop carrying the smell, you’ll need an alternative to your own washer and dryer. Of course, you’ll also need to keep them away from your home for the remaining duration of the cleaning process.

In particular, carpets have a habit of retaining smoke smells long after you’ve quit. With this in mind, taking care of any carpets or curtains in your home should be a top priority.

Account For Deeper Problems

Once you’ve given your home a steam cleaning treatment and washed all of the stained surfaces down with a mixture of water and bleach, you may still discover that some areas of the house are still affected. At this point, it’s time to simply accept your losses and purchase a replacement. A nice smelling home will be far more attractive to buyers than one that inexplicably reeks of smoke.

If you’re unsure of any further steps to take in preparing your home for a sale, don’t hesitate to contact your real estate agent and request more information. Your home deserves a high price for all of the effort you’ve put into cleaning it.

Last week’s economic news included a number of housing related reports. According to the National Association of REALTORS®, pending home sales dropped by 1.10 percent in June. The S&P Case-Shiller Home Price Index reports for May noted that home prices are growing at a slower rate of 9.30 percent year-over-year than April’s year-over-year growth rate of 10.80 percent. Construction spending was also lower in June.

The Fed’s FOMC statement indicated that asset purchases connected to quantitative easing will cease in October, but that the current target federal funds rate is expected to stay in place “a considerable period” after asset purchases conclude. FOMC noted its concern over housing markets, which was based on slower home price growth and market activity.

Pending Home Sales, Home Price Growth Slower

Pending home sales dropped by 1.10 percent nationwide in June. This was the first decrease in four months. Pending home sales rose by 1.10 percent in the Midwest and 0.20 percent in the West, but dropped by 2.90 percent in the Northeast and 2.40 percent in the South. Pending sales are measured by signed purchase contracts and provide an indicator of future completed sales and mortgage loan activity.

The 20-city Case-Shiller Home Price Index for May fell by 1.50 percent to a year-over-year reading of 9.30 percent from April’s 10.80 percent. No cities in the 20-city index reported declining home prices.

Construction spending fell by 1.80 percent in June against projections of an 0.30 percent increase in spending and May’s reading of an 0.80 percent increase. Reasons cited for lower construction spending included builder focus on high-demand areas. Builders have also indicated concerns about rising mortgage rates and tight loan requirements that impact numbers of home buyers that can qualify for home loans.

Mortgage Rates Little Changed, Fed Continues Wind-Down of Asset Purchases

According to Freddie Mac’s weekly Primary Mortgage Market Survey, rates were little changed last week. The average rate for a 30-year fixed rate mortgage was 4.12 percent as compared to 4.13 percent the prior week. Discount points were unchanged at an average of 0.60 percent. The average rate for a 15-year fixed rate mortgage fell by three basis points to 3.23 percent with discount points higher by 10 basis points at 0.70 percent. The average rate for a 5/1 adjustable rate mortgage fell by one basis point to 2.38 percent with average discount points of 0.40 percent unchanged.

The Federal Open Market Committee (FOMC) of the Federal Reserve issued its customary post-meeting statement on Wednesday. The FOMC plans to continue reducing asset purchase under the current quantitative easing program until the purchases cease in October. Although some analysts were concerned that the Fed may consider raising its target federal funds rate based on lower than expected unemployment figures, the FOMC said it doesn’t plan to raise the target federal funds “for a considerable time” after the QE purchases cease, but no specific timeline was given.

Labor Sector News

The Department of Commerce’s Bureau of Labor Statistics posted a national unemployment rate of 6.20 percent for July, which was higher than expectations of a 6.00 percent national unemployment rate and June’s reading of 6.10 percent. To put these readings in perspective, the Fed had established an unemployment rate of 6.50 percent as a benchmark for winding down its asset purchases and potentially raising the target federal funds rate.

Non-farm payrolls reported 209,000 jobs added in July against projections of 235,000 jobs added and June’s reading of 298,000 jobs added. While July’s reading was lower, analysts said that job growth suggests ongoing recovery for labor markets. Labor markets have been cited in recent months as reasons for slower demand for homes and home builder skepticism.

Next week’s scheduled economic news contains no housing-related reports other than Freddie Mac’s mortgage rates report.

If you’re thinking of buying a home, you’ve probably been thinking a lot about your credit score as well. Credit scores control so much of what we do in the world of finances, but what does your credit score really have to do with your mortgage? Here are three ways that your credit score could impact your mortgage application.

Your Credit Score Affects Your Ability To Get A Mortgage

The first thing your credit score tells a lender is whether they should lend to you at all. In some cases, if you have a very low credit score, you may not be able to obtain a mortgage at all.

Different lenders will have different criteria for determining safe and unsafe lending situations. Typically, if you have a score below the 600 mark, you’ll have trouble obtaining a mortgage.

If you’re worried about a low credit score, don’t despair – you can still get a mortgage, you just might have to work a little harder to get one. Some lenders will still lend to people with lower credit scores (just make sure you’re approaching legitimate lenders and not mortgage scam artists). Or, if time is on your side, you can work toward building up your credit score so that when it comes time to take out a mortgage, your score will be more appealing to lenders.

Your Credit Score Affects What Types Of Mortgages You Can Obtain

The second thing a lender learns from your credit score is which types of mortgages you qualify for. If a lender sees you as a higher risk, they won’t necessarily be willing to offer you just any old mortgage.

In most cases, if you have a credit score of less than 620, you won’t qualify for a conventional mortgage. In addition, if you have a lower credit score, you may have to make a larger down payment in order to qualify for the type of mortgage you want.

Your Credit Score Affects Your Interest Rate

The final thing that a lender learns from your credit score is what type of interest rate they’re willing to offer you. As a general rule, the higher your credit score, the lower the interest rate.

However, just because you have a high credit score, that doesn’t mean you’ll automatically get a great mortgage rate. There’s more that goes into the price of a mortgage than just the interest rate, so watch out for additional factors like extra fees, mortgage insurance, lock-in periods, and so on.

Your credit score tells a lender a lot about what type of borrower you are. Ultimately, a higher credit score means that you’ll be able to borrow money at a lower interest rate. But if your score is low, don’t worry – there’s a lot you can do to bring up that score before you apply for a mortgage, so don’t throw in the towel just yet!

Last week’s economic news brought several housing-related reports, which indicated varying results in terms of gauging the economic recovery. FHFA reported slower growth of home prices associated with Fannie Mae and Freddie Mac mortgages, but sales of existing homes as reported by the National Association of REALTORS® surpassed expectations and May’s reading. Sales of new homes slumped to their lowest level in three months. Weekly jobless claims were lower than expected and also lower than for the prior week.

FHFA Home Prices Grow at Slower Rate, Existing Home Sales Higher than Expected 

The Federal Housing Finance Agency (FHFA) reported that the average sale price of homes associated with mortgages owned or backed by Fannie Mae and Freddie Mac grew by.40 percent in May with year-over year growth of 5.90 percent. While national home price readings continue to rise, they are doing so at a slower pace since 2013’s rapid appreciation of average home prices.

Sales of previously owned homes reached their highest level in eight months in June. Existing home sales surpassed expectations and May’s reading in June, with sales of pre-owned homes at a seasonally adjusted annual rate of 5.04 million units. Analysts forecasted sales of existing homes at 5.00 million against May’s reading of 4.91 million existing homes sold.

New Home Sales Fall Short in June

New home sales did not achieve the expected volume for June. The reading of 406,000 new homes sold was less than the expected reading of 475,000 new homes sold. Projections were based on the original May reading of 504,000 new homes sold, but this was downwardly revised to 442,000 new homes sold in May. Builders were said to be cautious about over-extending themselves are focused on new home construction in high-demand areas where home prices are higher. Homes are less affordable in such areas, which impacts lower sales volume.

Freddie Mac: Mortgage Rates Steady for 30-year FRM

The average rate for a 30-year fixed rate mortgage was unchanged at 4.13 percent with average discount points also unchanged at 0.60 percent according to Freddie Mac’s weekly survey of mortgage rates. The average rate for a 15-year fixed rate mortgage rose by three basis points to 3.26 percent with discount points higher at 0.60 percent. The average rate for a 5/1 adjustable rate mortgage was two basis points higher at 2.99 percent with discount points ten basis points higher at 0.50 percent.

Weekly Jobless Claims Lowest since 2006

A major consideration for home buyers is stable employment. Recent reports suggest that the labor market is expanding; the Weekly Jobless Claims report continued this trend with a lower than expected reading of 284,000 new jobless claims filed against expectations of 310,000 new claims and the prior week’s reading of 303,000 new jobless claims. Analysts found the declining number of new jobless claims consistent with lower unemployment rates, but cautioned that sustained weekly jobless claims readings lower than 300,000 are more consistent with a national unemployment rate of 5.00 percent or less.

What’s Ahead

This week’s scheduled economic news will add further insight to housing market trends with the release of Pending Home Sales for June and the Case-Shiller Home Price Index report for May. The Bureau of Labor Statistics will also release July’s Non-Farm Payrolls report and National Unemployment report. The Federal Reserve is set to release its customary statement in the aftermath of the Federal Open Market Committee (FOMC) meeting that concludes on Wednesday.

If you are nearing retirement, a reverse mortgage might be right for you. This type of mortgage essentially allows you to turn your home equity into cash. If you find yourself with little money, a reverse mortgage could be the perfect solution, and here’s why.

No Worries About Monthly Payments

After taking on a mortgage, there are many costs that you have to worry about. One of these problems is mortgage insurance premiums. Add interest and fees from lender service providers to the mix, and you’ve got yourself many costs.

All of these fees can create tremendous headaches, as a large chunk of the loan amount goes into covering these costs.

When you undertake a reverse mortgage, you don’t have to worry about any of that. The loan is paid back with home equity, not ongoing cash flow, so monthly payments aren’t a worry.

Your Income Won’t Affect Your Eligibility, And The Income You’ll Get Won’t Create Problems

If the reason you’re hoping to get a reverse mortgage is your low income, the last thing you want is that income to be the deciding factor. With this type of loan, it’s not an issue. That’s because the thing that determines eligibility is your house’s value.

In fact, the income you’ll be getting from this loan is not taxable, which means you’ll be able to keep it in full. Plus, any benefits you get from Medicare will not be affected, and neither will your Social Security.

As such, what you’ll be getting is a loan that doesn’t take into account your current income. Rather, it adds on to it, without creating any issues for you. Plus, you’ll be able to get the money in several different ways, which means you’re in control.

Lastly, the money you get is fully yours. That means that you can use it for anything you want, whether that means you’ll be paying off other loans, or simply funding your day-to-day needs.

You Won’t Be Taken Away From Your Home

Your house is yours because it feels that way. It’s the place in which you’ve invested money and effort. It’s also the place where many loved memories were created, and where they’ll keep on being created.

One of the hardest things for the elderly is being removed from their loved homes and placed into care. They have to leave the place they’ve grown to love. Worse than that, they’re thrown into a world they don’t know.

With a reverse mortgage, this doesn’t need to happen. With this type of loan, you get additional income, and you get to stay in your own house.

Not only that, but you’re also keeping the title to that place until you move, pass away, or reach the end of the loan’s term. Your home will stay yours, both effectively and in the documents.

There are many more reasons why a reverse mortgage is a great idea. However, the fact that you’re in complete control of the income you’ll be getting is one of the most important things.

If you’d like to learn more about reverse mortgages, be sure to contact your mortgage professional.

If you are an entrepreneur or a small business owner, you probably know that there are a lot of advantages to this lifestyle – the freedom, the exciting challenges, the opportunities and the ability to make a living doing what you love.

However, you also know that being a small business owner can make some things more challenging – such as apply for a mortgage for your home.

Many small business owners find it tough to get approved for a mortgage, because their income can be erratic and the banks want to see proof of consistent earnings over a significant period of time.

However, it is possible to qualify for a loan as a small business owner. Here are some important things that you need to know about the process:

Ask Your Mortgage Lender What They Look For

If you ask your mortgage lender, they will probably offer you a checklist for putting together all the information needed in your mortgage package. It should have instructions on what specific documents you need to include if you are self-employed.

Filling Out The Right Forms

When applying for the loan, you will need to fill out IRS Form 4506-T, which is a Request for Transcript of Tax Return. This is basically a form that will allow the lender to look at your tax returns from the IRS, which shows proof of your earnings.

You are not able to show lenders copies of your tax returns – they must get them directly from the IRS themselves.

Submitting A Profit And Loss Statement

It can also help to ask your accountant to prepare a Profit and Loss Statement, which highlights the amount of money that you have brought in – compared to the expenses of setting up your business.

If you present several of these on a quarterly basis, it will prove to the bank that your business is growing and is profitable enough to cover your mortgage.

The important thing to remember is not to give up on the idea of owning a home just because you are a small business owner. Ask your accountant for help and take the time to submit the right proof of earnings, so that you get the mortgage for your dream home.

For more real estate advice, call or email your trusted real estate professional.

According to the National Association of REALTORS®, existing home sales surpassed both May sales and expectations for June. Sales of previously owned homes increased by 2.60 percent in June and reached a seasonally adjusted annual level of 5.04 million sales. June’s reading was the third consecutive monthly increase in sales of existing homes and was the highest reading for existing home sales in eight months. Existing home sales remain 2.30 percent below the June 2013 reading of 5.16 million sales of existing homes.

Analysts projected sales of 5 million existing homes for June against May’s initial reading of 4.89 million sales of previously owned homes; the May reading was later revised to 4.91 million sales. Lawrence Yun, chief economist for the National Association of REALTORS® said that market conditions are becoming “more balanced,” and noted that inventories of existing homes are at their highest level in over a year and that price gains have slowed to much more welcoming levels in many parts of the country.

Housing Market Headwinds Declining

After a particularly harsh winter and lagging labor reports, analysts forecasted lower annual sales of existing homes for 2014 than for 2013. Labor markets are stronger according to recent labor market reports and a declining national unemployment rate. Steady work is an important factor for families considering a home purchase; as labor markets improve, more would-be homeowners are expected to become active buyers.

Housing markets are not without challenges. In recent unrelated reports, the Federal Reserve has noted higher than anticipated inflation may cause the Fed to raise its target Federal Funds rate in the next several months. Gas and food prices, important components of consumers’ household budgets continue to rise and could slow save toward a home for some families. Steve Brown, president of the National Association of REALTORS®, said that first-time and moderate income buyers continue to deal with affordability due to increased FHA costs and tight mortgage credit. Relief may be in sight as a slower pace of home price growth suggests that more buyers may be able to afford homes.

FHFA House Price Index Reports Gain in May Home Sales

FHFA released its May index of home sales connected with mortgages owned or backed by Fannie Mae and Freddie Mac. The index posted a month-to-month gain of 0.40 percent in May and a year-over-year gain of 5.90 percent year-over-year. FHFA said that increased sales were driven by a 9/60 percent increase in sales in the Pacific region and that average home prices remain 6.50 percent below April 2007.