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Mortgage Rates & Winterizing your Home
A slight dip in interest rates last week brought more homeowners and home buyers to the mortgage market. More homeowners were quick to refinance before interest rates rise again, and home buyers were able to lock in lower rates during the week.
The Mortgage Bankers Association reported that total mortgage application volume ”which includes for refinancings and home purchases” rose 3.1 percent last week on a seasonally adjusted basis. Mortgage applications, however, still remain 8.5 percent below a year ago.
Last week, refinance volume rose to its highest level in a month, increasing 6 percent during the week. Yet, refinancing is still 24 percent below a year ago, when rates were much lower.
Applications for a home purchase were up just 0.4 percent last week. Purchase volume is 17 percent higher than the same week a year ago. That marks a much larger annual spread than the past several months, CNBC reports.
The 30-year fixed-rate mortgage averaged 4.18 percent last week, according to the MBA.
“Additional developments surrounding the administration’s tax-reform plan pushed rates lower at the beginning of the week, but this was effectively offset by news of stronger economic growth in Europe,” says Joel Kan, an MBA economist.
Source: Weekly Mortgage Applications Rise as Rates Briefly Fall Back, CNBC (Nov. 15, 2017)
Time to Winterize your Home
We have had milder than normal Fall temperatures so far in Western North Carolina. However, if you own a second home here, and are not going to be using that home for an extended period, do not forget to winterize the water lines. For most homes this means having a plumber, or another professional, use an air compressor to blow all the water out of the water lines inside and underneath your home. This is the only sure way to prevent frozen lines and potential damage that could run into the thousands of dollars. Don’t forget to add some RV antifreeze to toilet bowls, and drain dishwasher and icemaker lines, which can also freeze. Even if you are not winterizing your home for an extended away period, don’t forget to disconnect hoses from outdoor hose bibs (spigots). Leaving a hose connected can leave water in the spigot itself which can freeze and burst. This may even cause a water leak inside the wall, resulting in an expensive repair.
5 Things NOT TO DO if you are Listing Your Home
As today is Halloween, I thought it appropriate to share this article from Realtor Magazine about Horrors at Home Showings. I hope the below is educational for anyone contemplating selling their home.
5 Horrors at Home Showings
From the artwork to the odor, your listing may be inadvertently giving buyers the creeps. Realtor.com® recently interviewed real estate professionals about the items that have scared off their buyers the most during showings. Here are the top five spooks.
- Doors with too many locks. If the doors have more than the standard two locks, your buyer may wonder if something happened on the premises to make the seller feel unsafe, says Glenn Phillips, CEO of Lake Homes Realty in Birmingham, Ala. “Given a choice, most people won’t buy in places they think are unsafe,” he says.
- Taxidermy. A single deer head may pass muster in some areas, but taxidermy runs the risk of making some buyers uncomfortable. “One house I helped stage had a stuffed bighorn sheep in the dining room and a stuffed bear in the family room,”says Amy Bly of Great Impressions Home Staging/Interiors in Montville, N.J.
- Questionable art choices. Any artwork displayed should be neutral and carry no risk of offending or confusing potential buyers. Jeff Miller, cofounder of AE Home Group in Baltimore, recalls a seller who was obsessed with feet and displayed framed paintings and sculptures of feet -”and even keychains with feet on them. “I told the seller to get their feet out of the picture,” Miller says.
- Obvious DIY repairs. Amateur repair work that’s left half done can prove to be a big turnoff to buyers. “I once encountered a little house of horrors that actually had caution tape across a very outdated bathroom with a hole in the floor,” Bly told realtor.com®. The home also had “dark rooms with lights that didn’t work, as well as nonfunctioning appliances in the kitchen.”
- Odd smells. Pet odors, mold, or musty smells can also give buyers the creeps. “Almost every home has a unique smell, and the owners rarely realize it,” says Jerry Koller, a sales associate with International Home Realty in Irvine, Calif. “Of course, it’s smart to try remedies such as Febreze or candles. But sometimes, you just need to replace carpet before putting your house on the market.”
Source: “8 Frightening Things in Sellers’ Homes That Can Scare Buyers Silly,” realtor.com® (Oct. 17, 2017)Version:1.0
What a Difference a Drone Makes
Here in the North Carolina Mountains, most of our homes don’t have level, flat yards. This can make taking a photo of a home for the MLS and for all the various internet sites, like Realtor.com, extremely difficult. I have inserted two pictures above of the same home. The first picture was taken from the drive. As you step back from the home, in order to get the whole house in the frame, the picture becomes more and more distorted, because you are looking up at the home. The second photo was taken by a drone. This shot shows the home at a much better perspective than does the photo taken from the ground. If you were the owner of this home, and wanted potential buyers to view your home in its best light, which photo would you prefer? Photos tell a visual story. The second photo tells a much better story.
At Mountain Dreams Realty, we do professional photography on every home we list. That includes doing drone photography when the drone camera is the best tool for the job. We also do professional virtual tours on most of the homes we list for sale. Not only does this allow more photos than MLS, which limits the number of photos to 24, but it also allows a prospective buyer to view your home full screen on their computer or tablet. MLS photos are small, and details can be difficult to see. Viewing a photo full screen lets a potential buyer see those small details that would be missed in an MLS photo. We also add a video about the area to the end of our virtual tours. Many buyers come here from out of state, and are not familiar with our area. The area video we add shows a little of the infrastructure, recreational opportunities, and natural beauty of the area.
We are a small, boutique real estate agency with only 6 agents. This allows us to go above and beyond the clients’ expectations. We are not hampered by a national office that tells us what we can and cannot do. Whether listing with us or buying a property, YOU set the expectations.
Fall Color is Coming Fast!
The leaves have begun changing color and dropping off the trees here in the mountains. I was asked to map a route that I thought would provide some extraordinary leave viewing for Fall colors. So, here goes:
From Downtown Waynesville, head south on highway 276. After going over Waynesville Mountain, you will come into a valley with a community called Bethel. Look for highway 215 to the right. This road will be a pleasant drive through the valley, then by Lake Logan and on up through a fairly tight gorge following a fork of the Pigeon River. At one point you will cross a small stone bridge over a beautiful cascading stream. Be sure to stop and take a picture of the cascade, or as some would call it the waterfall. Continue up 215 to the Blue Ridge Parkway. Take the Parkway north toward Asheville. You will pass the parking area for Devil’s Courthouse on the right. If you are up for a short uphill hike, stop and walk up to the top along the well-marked trail to the rock cliff called Devil’s Courthouse. You will find some exceptional views at the top. Also, listen for the sharp calls of the Peregrine Falcons, often seen sailing on the air currents below the cliff. Just past the parking area for Devil’s Courthouse you will drive through Courthouse Tunnel. Past the tunnel you will see some high cliffs to your left, and beautiful views toward Pilot Mountain and Brevard to your right. At milepost 420, there is a paved forest service road to the left. Stop at one of the parking places on the right and take in the views of Graveyard Fields below. (There are several stories about the origin of this name. One is that after a huge forest fire in the 1920’s, many gray Chestnut stumps occupied the little valley and surrounding hills, looking like tombstones.) There are several waterfalls in the fields from the Yellowstone Prong of the Pigeon River. Many hiking trails begin from this forest service road. One trail at the end of the road goes up to Big Sam Mountain. Big Sam is one of the higher peaks in the area with great views from the top. Once back on the parkway you will see the parking area for Graveyard Fields on your left. Usually this is a very congested area with hikers. Just past Graveyard Fields keep looking to the left for the next mile or two for unusually brilliant colors in this area. Continue down the parkway to Wagon Road Gap. Here you can exit the parkway and take highway 276 back toward Waynesville.
This loop is one of my favorite rides for Fall color in Western North Carolina. Come see it for yourself!
Irma Only Brought Rain to Haywood County NC
Our hearts go out to all the residents of the Houston, Texas area, and those in Florida, Georgia, and South Carolina who were affected by the recent hurricanes. I cannot imagine how one would feel who lost everything in a flood or hurricane. I do hope that everyone affected by these storms had flood insurance and will eventually get back to normal. Many of you took refuge in our area during the storm, and some are still here. Again, we do feel your pain.
We had almost no wind at our house, and about 3.5 inches of rain. It has been a bit dry lately, so the rain is much appreciated.
I look forward to seeing some of you next month for our Fall color season. I think our colors are going to be superior this year. (unfortunately, no guarantees on the color) If you come up for the color season, stop by the office and say “Hello”!
Fall Color Season is Just Around the Corner
Fall color season will shortly be upon us! Labor Day is this coming weekend; October is only 4 weeks away. Our best color viewing here around Maggie Valley depends upon your elevation. The colors begin turning in early October at higher elevations, and move down the mountain from there. Our best colors in the valley are usually around the 20th to the 25th of October. According to the Asheville Citizen Times this year will be an “average season”. This is based on prognosticators’ forecasts. I find they are usually correct about 50% of the time. In other words, flip a coin.
I remember a few years ago Barbara and I travelled to Maine, where she lived as a child. It was color season in Vermont and New Hampshire, so we spent some time there taking in the Fall colors. Oddly enough, the best colors we saw were at the end of our trip, right here in these Smoky Mountains. We are so fortunate to live in a place that has such spectacular vistas, breath-taking waterfalls, and some of the best Fall colors in the USA!
Sooo… come on up to the mountains, the colors should run between good and spectacular. While you’re here, stick your head in the door and say hello.
Maggie Valley will go Dark on Monday August 21st!
We are all waiting for the eclipse on Monday, August 21st. It appears the Moon will start moving in front of the Sun shortly after 1:00 PM. By about 2:30 PM it should be almost totally dark here with some stars visible. By 4:00 PM the Moon will be out of the Sun’s shadow, and hopefully, full daylight will resume. I remember seeing a partial eclipse when I was in elementary school (many years ago), but never a total eclipse. Motels and hotels in Western North Carolina seem to be enjoying a land-office rate of bookings. Our local Ingles grocery store in Waynesville has sold thousands of eclipse viewing glasses.
This brings up an important subject. Do not watch the eclipse without proper eclipse glasses. Doing so can permanently damage your eyes. Also, do not point your camera at the Sun without using a Solar Filter. Solar filters are expensive, and photographing an eclipse is very difficult, even for professional photographers. Trying to take a picture without a proper Solar Filter will destroy your camera.
If you are coming to Western North Carolina for the eclipse, hopefully you have already made reservations for lodging. Also, traffic could be very congested on Monday. If you are planning to go up on the Blue Ridge Parkway to popular spots like Water Rock Knob, Devils Courthouse, Graveyard Fields, or the Black Balsam Parking Area, be sure to leave early, as those spots will fill up rapidly. The National Park Service has announced that Clingmans Dome Road in the Smoky Mountains National Park will be closed on Monday, so don’t even think about going to Clingmans Dome.
The weather forecast for Monday is calling for a 30 percent chance of showers, or thunder showers, in the afternoon. I am keeping my fingers crossed for clear weather, but some clouds are probably a sure bet.
If you are planning on being here Monday, I wish you a happy and memorable time viewing the eclipse.
Mortgage Rates have Dropped Again!
At their last meeting the Federal Reserve voted to leave the key rate alone. Home mortgage rates actually more closely follow the 10 year bond rate than the key rate from the Federal Reserve. (This is because 30 year mortgage loans only last for an average of 10 years as owners sell their homes before the mortgage is paid off.) After the Fed meeting, the 10 year bond yield dropped 2.7 basis points.
As of the week of July 27th, 30 year fixed mortgage rates averaged 3.92 percent, 15 year fixed mortgage rates averaged 3.20 percent, and 5 year hybrid adjustable-rate mortgage averaged 3.18 percent, as reported by Freddie Mac.
Many buyers don’t stop to compute how much difference their payments can be on a small percentage rate difference. Over the life of a 30 year mortgage, the difference in a 3.92 percent rate and a 4.5 percent rate costs the buyer $30,481.20 in additional payments.
Eventually, mortgage rates will rise again. Now is a great time to buy that first home, vacation home, rental property, or retirement home.
If you are thinking about buying your next home, vacation home, or a home for retirement, please give us a call. Likewise, if you are thinking of selling your home, contact us. We will be happy to do a Current Market Analysis and let you know the price of your home in comparison to other homes that have recently sold.
4 Common Home Buyer Slip-Ups
I found this article this morning, and thought the advice to prospective home buyers was “spot on”. We do see buyers shoot themselves in the foot often times. Item number 2 is particularly exasperating. I hope this information benefits some prospective buyers out there.
Real estate professionals see a lot of dumb reasons why home buyers ultimately end up losing out on a deal. Practitioners recently shared some of the more common mistakes with realtor.com®, including ways to correct the situation:
1. Shopping outside their price range.
“It sounds obvious, but some home buyers just have trouble sticking to a budget”, says Benny Kang, a real estate professional in Irvine, Calif. Shopping online may increase the temptation to bump up the price range. One way to avoid this situation is to encourage your buyers to get preapproved for a loan so they know what they can truly afford and stay within their limits.
2. Submitting lowball offers in a hot market.
“If you’re in a seller’s market, making a crazy lowball offer can piss off the seller”, says Kang. Buyers would be smart to offer full price when homes are priced well. Help buyers understand how a comparative market analysis can offer insight into pricing.
3. Making a big purchase while in escrow.
Buyers often don’t realize they will need to delay big purchases and opening new credit lines while in the process of buying a home. “Even buying a fridge can throw off your credit or debt-to-income ratio”, says Kathy Conway, a Philadelphia real estate professional. If a big purchase is made, the mortgage lender’s underwriter will need to re-evaluate the buyer’s finances and recheck her credit report before closing to ensure the buyer still qualifies for the mortgage, so be sure to warn buyers when they’re approaching this period.
4. Forgetting to budget closing costs.
Buyers don’t just need money for the down payment. There are a lot of extra fees at settlement, too. Buyers can receive an estimate from their mortgage lender of what the closing costs will be before even making an offer on a property. Make sure they review that information carefully. Closing costs can vary drastically but typically cost 2 to 7 percent of the home’s purchase price.
Source: “8 Dumb Reasons People Can’t Buy a Home”, realtor.com® (July 11, 2017), and Daily Real Estate News, (Wed July 12, 2017)
First Impressions when Selling your Home
You know the old saying: “One never gets a second chance to make a first impression.” This is a very accurate rule when selling your home. I’m sure you have read all the obvious recommendations, or perhaps have seen them on one of the “fixer upper” TV shows that are so popular now. Have your yard mowed, your shrubs trimmed, no clutter in the yard or in your home, maybe repaint your front door, keep your home spotlessly clean, remove most personal photos, bake cookies just prior to showings. All these suggestions do help make your home more attractive, but remember, when a prospective buyer comes into your home for a showing, this is not their first impression. Their first impression was when they saw your home on the internet from their home computer, or even their cellphone. Or maybe their first impression was sitting in their agent’s office looking at homes on a computer monitor. So, actually, the first impressions of your home by a prospective buyer is the pictures your listing agent took of the home. Is your listing agent a good photographer? Did your listing agent hire a professional photographer? Did your listing agent take drone photos of your home? Take for example the picture shown above. This is a beautiful log home in a gated community. The landscape in front of this home is not flat. It drops off rather quickly. (Like many mountain homes facing the view.) A photographer cannot get far enough away from the front of this home to take a picture. Therefore, the drone photo above. Not only does this photo show the front of the home, but also shows the surroundings, and the privacy this home affords. A good question to ask a prospective real estate agent wanting to list your home is: “Who does your photography?” Even better, find some current listings by this agent and see if you like the photography.
Here at Mountain Dreams Realty, we believe first impressions do matter. That is why we have in-house professional photography, including drone photography. We know you never have a second chance to make that first impression.
