Why Mortgage Rates Are So Low Right Now

Why are interest rates so low right now? Global economics have made American real estate a great haven for investments, so rates have dropped.

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It's not very nice to profit from your neighbors’ troubles. Sometimes, though, there's simply nothing you can do to stop it.

At the beginning of the summer, as I'm sure you have heard, the UK voted to leave the EU. This became known as "Brexit," and it has created heaps of uncertainty and worry for our neighbors across the Atlantic.

Here in the U.S., though, Brexit has been nothing but good news for the real estate market. Because of Brexit, investors all over the world wanted a safer place to invest, and this pushed already low mortgage rates down even further to almost unseen lows.

In fact, we are now in the middle of the second-longest run of cheap mortgage rates in history. The 30-year fixed rate mortgage is 3.46%; this is only a few points above its all-time low of 3.31%.

What does this mean for you?

First, if you are looking to buy a home, now is an unusually good time to do so because these low rates mean you will be paying less. As an example, taking out a 30-year, $250,000 mortgage today versus a year ago (when the rate was 3.91%) would mean that you would save more than $25,000 over the lifetime of the loan.

The other way to look at it is that at today’s rates, you can afford a more luxurious home without paying more. For example, if you were to take out a 30-year mortgage, you could now afford $15,000 more for a home than a year ago while keeping the same monthly payments.

Clearly, this is a great opportunity.

Here in the U.S., Brexit has been nothing but good news for mortgage rates.

Now, if you are looking to sell rather than buy, these low rates also benefit you big time. The more the mortgage rates drop, the more buyers there are, and the greater the demand is for homes.

This healthy demand keeps up the price of your home and ensures your home will get sold quickly. Not surprisingly, pending home sales are up by 1.3% this summer and are now at the second-highest level in over a decade.

As you can imagine, these ultra-low mortgage rates won’t last forever and will rise sooner or later.

If you are looking to take advantage of this unique situation while it lasts, give me a call or send me an email. I’m always here to help.

Fall Is a Great Time to Sell in Mansfield

Contrary to popular belief, the fall is actually a great time to sell a home. You may not see as many buyers as you would in the spring and summer, but you can be sure that fall buyers are more serious.

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Today I wanted to talk about why the fall is such a great time to sell your home.

Sometimes, it really pays to go against the crowd.

As you probably know, spring is the season when most people around Mansfield put their homes on the market. Summer is the high season, and it’s when most homes get sold. And yet, there are a few powerful reasons why fall might actually be a better time than either spring or summer to sell your home.

It makes perfect sense when you think about it.

By the fall, the bulk of spring listings are expiring. As a result, there is less competition, particularly when you consider the *NEW* label and the fewer days on the market that your listing will boast. Also, home buyers in the fall are more serious. They have been looking at listings for months, and they are eager to conclude their search and move in comfortably before the holidays.

It makes perfect sense when you think about it.

When you put those two things together, you get that homes listed in the fall sell more quickly and often command a higher price. In fact, fall is the season with the highest percentage of sold listings, beating out summer by 1%.

Now, if you are thinking of selling your home this fall, there are a few things you have to do differently.

First, you have to prepare your home to account for the particular fall conditions. For example, you need to check the HVAC system and replace your furnace filter so your home will be warm and smell fresh. Also, make sure to turn on all the lights; you've got to compensate for the shorter, cloudier days. Cleaning up the yard is also a must.

The second thing you need to do is price your home appropriately. To get started, check out the value calculator I created that takes into account recent Mansfield sales to give you an idea of what your home is worth right now.

Once you have an idea of what your home is worth, how should you price it? On the one hand, the fall is not a good time to start with a sky-high price. If you don’t sell right away, you might not have time to adjust the price because of the smaller number of buyers and the shorter selling period (nobody wants to move over Christmas).

On the other hand, those serious buyers I mentioned earlier might be willing to pay more simply because they’ve been looking longer and are more eager to buy.

It’s a balancing act. It’s also something I can definitely help you with. Give me a call if you are considering selling this fall, and I’ll give you my recommendations on how to price your home based on current conditions in Mansfield.

Which Updates Will Help Sell Your Mansfield Home?

If you are considering selling your home in the near future, you are probably planning on making a few renovations. However, some renovations are more appealing to buyers than others.

These improvements will actually deter buyers when it comes time to sell your home:

1. Too much wallpaper. Buyers don’t want to tear down a bunch of wallpaper in order to paint; they want the walls ready for painting when they move in.
2. Lavish lighting fixtures. You might have a different sense of style than the buyers, so keep it simple when it comes to the lighting fixtures.
3. Textured walls, wall coverings, and ceilings. Many times, people think they are adding value with different DIY textures when, really, they put up too much. You should also avoid murals, permanent wall coverings, or cute ceiling decals that may damage the walls.
4. The wrong kind of flooring. Flooring is expensive to replace and the wrong kind of flooring will be detrimental to your home sale. Buyers want plain, neutral decor when they move in.
5. Too much carpet. Carpet holds dirt and shows traffic patterns. Most buyers do not want to see that everywhere.
6. Bold wall colors. Remember, bright, loud colors are bad; neutral, soft colors are good.
7. Swimming pools and hot tubs. You may enjoy a pool or hot tub but most buyers don’t want to deal with or pay for the maintenance.

Keep the decor light, soft, and neutral.

That said, other renovations will add value to your home and net you more money when it comes time to sell. The top four renovations to make when selling your home are:

1. Renovating your kitchen. Buyers love to see updated kitchens. However, keep in mind that if you spend more than $20,000 on the renovation, you’re not likely to get all of that money back.
2. Bathroom renovations. Everyone likes to have a large, luxurious master bathroom, and buyers will pay extra for an updated bathroom.
3. New flooring. You probably can’t clean your carpet well enough to make people think that it’s new; instead, bring in new carpeting or tile. New flooring is a great way to add value and that new carpet smell will give buyers peace of mind.
4. Curb appeal. When buyers drive past your home, you need to make sure your property makes a good first impression. Plant flowers, trim bushes, and pull weeds. The more organized and orderly your lawn can be, the more appealing your home will be to buyers.

Now, this one is not on the list, but it’s incredibly important not to forget the backyard.

People want to see a yard that they can entertain friends in. A cluttered and unkempt backyard tells the buyer that you don’t take care of your home; a well-cared for backyard with trimmed trees, weeded flower beds, and trimmed grass tells buyers the opposite.

If you have any questions about getting your home ready for the market or about real estate in general, give us a call or send us an email. We would be happy to help you!