Many Realtors will advertise a bath as having 5 pieces. Ever wonder what constitutes a 5 piece bath?
A 5 piece bath consists of:
1. Bathtub
2. Separate shower
3. Toilet
4+5. Double sinks
Wednesday, June 30, 2010
Wednesday, June 9, 2010
What are mortgage points and when should you pay them?
Points are up-front fees paid to obtain a better interest rate on a loan. One point equals one percent of the loan amount. A lower interest rate may result in a lower monthly payment, but it is important to consider how long you intend to keep the loan, and to compare current rates to historical market trends.
If you take out a $300,000 mortgage and decide to pay one point, this translates into an up-front closing cost of $3,000. Paying a point up front saves $100 a month but it will take 30 months to recuperate the cost of that point. If you decide to refinance or sell the home before the 30-month mark, your money is lost. In this case, you would benefit financially by remaining in the home longer than the 30 months.
Rates run in cycles. When rates are at historical lows, it is sensible to pay points if you plan to live in the home for an extended period of time. It is unlikely that rates will go down; hence, there will be no need to refinance.
When rates are up, there is a strong likelihood that they will come down. This is no time to pay points. The chances of refinancing in the future are extremely high, and you will likely not be in the loan long enough to recuperate the cost of the points.
If you take out a $300,000 mortgage and decide to pay one point, this translates into an up-front closing cost of $3,000. Paying a point up front saves $100 a month but it will take 30 months to recuperate the cost of that point. If you decide to refinance or sell the home before the 30-month mark, your money is lost. In this case, you would benefit financially by remaining in the home longer than the 30 months.
Rates run in cycles. When rates are at historical lows, it is sensible to pay points if you plan to live in the home for an extended period of time. It is unlikely that rates will go down; hence, there will be no need to refinance.
When rates are up, there is a strong likelihood that they will come down. This is no time to pay points. The chances of refinancing in the future are extremely high, and you will likely not be in the loan long enough to recuperate the cost of the points.
Sunday, June 6, 2010
How to Improve Your Chances for an Offer
In this challenging economy, even the most beautiful homes may sit on the market. In order to improve your odds of procuring an offer, there are some things you can do:
1. Price it right. Set a price at the lower end of your property’s realistic price range or even 5% below "market price." We are still seeing multiple offers and bidding wars on those homes that are priced well.
2. Prepare for visitors. Get your house "market ready" at least two weeks before you begin showing it. The first weeks of a showing are the best time to market your home. Don't wait for the negative feedback before removing clutter, neutralizing colors or eliminating pet odors.
3. Be flexible about showings. It’s often disruptive to have a house ready to show at the spur of the moment. But the more amenable you can be about letting people see your home, the sooner you’ll find a buyer. My rule of thumb: have your home ready to be shown with 15 minutes notice. In case an out of town buyer drives past your sign, stops and wants to see your home before they board the plane that evening, you need to be ready. It happens more often than you can imagine that a seller tells a potential buyer to come back tomorrow, not realizing their housing decision must be made TODAY.
4. Anticipate the offers. Decide in advance what price and terms you’ll find acceptable. Call the movers and see how much notice they need. Investigate places to live should your home sell quickly. Remember, that is a good problem we should welcome.
5. Don’t refuse to drop the price. If your home has been on the market for more than 30 days without an offer, you should be prepared to lower your asking price. Our market is changing and you need to be flexible on pricing and change to stay current with the market. Review point 1 above.
1. Price it right. Set a price at the lower end of your property’s realistic price range or even 5% below "market price." We are still seeing multiple offers and bidding wars on those homes that are priced well.
2. Prepare for visitors. Get your house "market ready" at least two weeks before you begin showing it. The first weeks of a showing are the best time to market your home. Don't wait for the negative feedback before removing clutter, neutralizing colors or eliminating pet odors.
3. Be flexible about showings. It’s often disruptive to have a house ready to show at the spur of the moment. But the more amenable you can be about letting people see your home, the sooner you’ll find a buyer. My rule of thumb: have your home ready to be shown with 15 minutes notice. In case an out of town buyer drives past your sign, stops and wants to see your home before they board the plane that evening, you need to be ready. It happens more often than you can imagine that a seller tells a potential buyer to come back tomorrow, not realizing their housing decision must be made TODAY.
4. Anticipate the offers. Decide in advance what price and terms you’ll find acceptable. Call the movers and see how much notice they need. Investigate places to live should your home sell quickly. Remember, that is a good problem we should welcome.
5. Don’t refuse to drop the price. If your home has been on the market for more than 30 days without an offer, you should be prepared to lower your asking price. Our market is changing and you need to be flexible on pricing and change to stay current with the market. Review point 1 above.
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