Spring real estate market is in full swing. As buyers, sellers and home builders negotiate extra add-ons and amenities prior to signing a purchase agreement, many forget the basics of prepping a home before it goes on the market. Consider a few tips:

Buy new furniture. It will look great in your current setting, and even better in your new home.

Place ice cubes on top of carpet indentations. The ice helps lift the fibers back to life.

When repainting the walls, choose light, bright colors with neutral tones.

Store personal photos. Though your buyers would surely love to see the photo of your first skydiving experience, you can always recount the story at the closing.

Update child bedroom décor to match the theme of the entire home.

Set a date with your realtor to give you ideas on final touches. He/she will be your best test audience with a motivational deadline.

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Short sale real estate transactions have become more of the norm rather than once in a while occurrance. But for those who are new to this term, let’s define what is exactly a short sale. A short sale is a sale of real property for an amount less than the unpaid balance of its first mortgage. Once costs such as real estate commissions, escrow, and title are passed along to the lender (who agrees to accept the proceeds as payment in full, despite the shortfall), the sale progresses.

Such a sale requires the consent of the lender and may create taxable gain for the seller — to the extent of the debt forgiven by the lender. Short sales have become a popular alternative to foreclosure, and are a more credit-friendly option.

Sellers who are considering a short sale should negotiate a payoff with their lender first before listing the property. This will help to determine the sales price. In addition, this will streamline the process, as it will make it faster and easier to close once a buyer has been found.

For buyers, short sales can involve a little more paperwork but overall, they are a great way to obtain a good price on a property.

When considering a short sale, make sure to involve a mortgage advisor, realtor, and attorney early in the process. They will provide guidance lead buyers through the appropriate steps to make the transaction as simple as possible.

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We all hear that “interest rates fluctuate on a daily basis.” Ever wonder how rates fluctuate over a long period of time? Here’s a quick run-down of historical rate changes over the past five years for two major mortgage products: the 5/1 ARM (adjustable rate mortgage) and the 30-year fixed:

30-YEAR FIXED
The most popular of all mortgage products is still at historic lows – and here’s proof. In April 2005, the 30-year fixed hovered around 5.5%, spiking to nearly 6.5% a year later. The 30-year saw ups and downs in 2010, from the all time lows of close to 4% range up to low 5%’s. Today, the 30-year is hovering around 5% – and keeps fluctuating on a daily basis. For payment stability, a long-term length of stay and a monthly principal that will never change, the 30-year fixed may be perfect for your situation.

5/1 ARM
Having an adjustable rate is advantageous to those looking for shorter stays in their new home – and ARM’s often deliver lower rates than fixed products. Especially now. In April 2005, 5/1 ARM’s were around 4.85% — and though they fluctuated with trending ups and downs similar to fixed rate products, the 5/1 ARM is now at it’s lowest point in the past five years.

For the most current rates and trends, call me today!

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