Easy Improvements to Boost Your Home Value

Bob Vaughan

When sellers are getting ready to move on from their home they want to make sure they’re getting top value even in today’s market. Some home improvements could cost thousands and not provide the return that sellers are hoping for. Here are a few tips of things to do to increase your home’s value.

  • Increase Curb Appeal: According to a report from HomeLight the cost to upkeep landscaping provides a 267% return at the time of sale.
  • Replace Your Garage Door: According to multiple agent’s reports they have seen clients refuse to even enter a property because of the condition of a garage door. A relatively cheap replacement could make a huge difference.
  • Update the Kitchen: Typically one of the most important spaces for a family, updating the kitchen is an investment that you’ll see great returns on.
  • Remodel the Bathroom: Along with remodeling the kitchen, this fix may cost a good amount of money but you will see almost 55% of the money returned when you sell. If you plan on living in your home a while longer, investing in an updated kitchen and bathroom will give you more enjoyment in your home and you’ll be able to recoup a large portion of the money invested when you sell.

Rent is Rising Country Wide

Bob Vaughan

As landlords begin to bounce back from their pandemic struggles, rent is rising across the country. The median rent nationwide in January 2022 was $1,789 per month according to a report from Realtor.com. This number represents an increase of 19.8% year-over-year. When comparing rent costs vs. home prices, rental appreciation exceeded home price growth among every size of rental unit. A two-bedroom rental increased by 19.2%, while a two-bedroom home only increased 11% last year. Buying a home may very well be a more affordable option depending on where you are currently living.

Despite Higher Interest Rates, Mortgage Applications Rise

Bob Vaughan

For the week ending November 19th, mortgage application volume rose 1.8% according to a report from the Mortgage Bankers Association. Specifically, the volume for new purchase applications went up 4.7% last week. Despite this time of year typically being a slower time for real estate transactions, mortgage application volume has now increased for the third straight week. Refinance applications made up 63.1% of total application volume this past week.

 

  • VA loan applications made up 10.3% of total volume this period, down .5% from the previous period.
  • FHA loan applications made up 8.9% of total volume this period, up .3% from the previous period.

Hidden Hazards Increasing Your Insurance Costs

Bob Vaughan

When you’re looking for a new home, the price of homeowner’s insurance typically isn’t top of mind. However, certain hidden risks can make getting coverage more difficult or expensive for new homeowners. Below are some things to consider, especially for first time home buyers.

  • How close are you to a fire hydrant or fire station? Being in close proximity to a fire station with wide roads for easy access could make your home easier to insure.
  • Is your wiring, heating system, and plumbing outdated? If any of the previous listed features are old or outdated, busted pipes and leaky water lines could result in serious water damage. Installing a whole-house water monitoring system may save you money on your homeowner’s insurance.
  • Is your home located in a state that experiences earthquakes? According to a U.S. Geological survey, sixteen states are at high risk for earthquake damage that is typically not covered in homeowner’s insurance policies. Certain types of homes are also at higher risk of earthquake damage, including many homes built before 1980.

 

Housing Market Stays Hot – Mortgage Applications up 6.8%

Bob Vaughan

Home mortgage loan applications gained 6.8% in volume last week, according to a report from the Mortgage Bankers Association. The refinance volume has continued it’s rise gaining an additional 9% over the last week and reaching a level 86% higher than this time last year. Refinance mortgage applications are now 64.3% of the total mortgage application volume.

 

  • The FHA’s share of mortgage applications rose to 10.1% from 9.7%.
  • The VA share of mortgage applications fell to 12% from 12.3%.

Refinance Mortgage Application Numbers 30% Higher than 2019

Bob Vaughan

After last week’s slight gain in home mortgage loan application volume, this week saw a 2.5% decrease in volume according to a report from the Mortgage Bankers Association. In similar fashion, the refinance numbers decreased 4% compared to last week, but once again remain 30% higher than the same time last year. The home mortgage loan application volume increased 6% year over year as well, marking a strong mortgage desire as the year continues.

 

  • The FHA’s share of mortgage applications decreased to 9.7% from 10.2% the week prior.
  • The VA share of applications increased to 12.3% from 11.2% the week prior.

Purchase Mortgage Application Numbers Remain High

Bob Vaughan

For the first time in three weeks, the mortgage application numbers have risen according to a report from the Mortgage Bankers Association. The refinance mortgage index saw an uptick last week gaining back the 3% it lost the week prior. Year-over-year the refinance mortgage application numbers are up 60%. As more and more people enter the home buying market, it is no surprise that home mortgage loan applications continue to rise.

  • The FHA’s share of mortgage applications remained at 10.2%.
  • The VA share of applications fell to 11.2% from 11.4%.

 

FHFA Refinance Fee Update

Bob Vaughan

The Federal Housing Finance Agency has been considering a surcharge of 0.5% to refinance mortgages otherwise known as the Adverse Market Refinance Fee. This fee was planned in order to offset projected COVID-19 losses of at least $6 billion at the Enterprises (Fannie Mae and Freddie Mac). The money spent at the Enterprises includes $4 billion in losses due to projected forbearance defaults, $1 billion in foreclosure moratorium losses, and $1 billion in servicer compensation and other forbearance expenses. On August 25th, The Federal Housing Finance Agency directed Fannie Mae and Freddie Mac to delay the implementation of this refinance fee until December 1st, 2020. The fee was originally scheduled to take effect on September 1st, 2020. FHFA also announced that refinance loans with a balance below $125,000 will be exempt, along with Home Ready and Home Possible refinance products.

Mortgage Applications Fall for the Third Consecutive Week

Bob Vaughan

Home mortgage loan applications fell 2% in the last week according to the newest report from the Mortgage Bankers Association, marking the third consecutive week of declines. The refinance index fell 3% last week, but remained 40% higher year-over-year. Purchase applications for home mortgages fell 0.2% from last week, but still saw a 28% year-over-year increase from last year marking the 15th week in a row of year-over-year gains.

  • The FHA’s share of mortgage applications fell from 10.5% to 10.2%.
  • The VA share of applications fell to 11.4% from 11.8%.

What to Know About Buying a Home Virtually

Bob Vaughan

The process of home buying is ever changing as time passes and technology grows. One way the process has differed in recent years is buying homes essentially “sight unseen”. According to a study by Redfin, nearly 45% of people bought a home in the past year by making an offer on a home they had not toured in person. The amount of people buying a home without touring it in person is up 28% year-to-year from 2019. Below are some things to consider in regards to today’s new home buying process.

  • Picking the right agent is even more important now. Having an agent who understands your tastes, preferences, and needs makes finding the right property easier for you. They will act as your eyes and ears in the buying process, so they need to understand what is important to you!
  • Request the most in-depth video tour possible. In addition, having the measurements and floor plan available to you during the video tour will help you get a better feel for each room.
  • Sellers may be biased against buyers who haven’t toured in person. When it comes time to make an offer, it’s important a buyer who never toured the home in person puts their best foot forward. Choosing a local mortgage lender, confirms the loan officer or client should be easily accessible by the seller’s agent should any questions arise.