Interest Rates on the Rise

Well, the Wall Street may have found bottom, or at least that is what is in the news nowadays. So why are interest rates on the rise?

The answer is simple, mortgages for the most part are not tied to stocks but bonds. Since investors believe that Wall Street has lost enough and there are so many bargain investments out there, Lenders are predicting a decline in the bond market and raising the rates. Today in Arizona, (which has a slightly higher rate than most of the country due to having one of the highest foreclosure rates) the interest rate fluctuate between 6.75% and 6.85%. It is expected to reach 7% by the end of the week.

So what does that mean if you are looking to buy a house? Well, your buying power is greatly reduced. Regardless of declining home values, it is better to buy now while interest rates are still historically low but time is running out and with more and more investors buying up bargain stocks, we can still expect to see mortgage rates rise.

AZ Prop 100- Protect your home

While, Arizona currently does not have a real estate transfer tax, there is nothing that prevents a tax from being enacted at any time.

With our current slow economy and budget crisis, it won't be long before cities, counties, and the state start looking for new sources of revenue.

Enacting a real estate transfer tax is gaining momentum in Arizona. Just last year a bill was introduced in the state legislature proposing such a tax. Countless citizens' commissions and county reports mention a transfer tax as a possible source of revenue for the state.

With the momentum for a real estate transfer tax growing, we must act now to put an end to this debate before it is too late!

Join us in passing a constitutional protection that will stop real estate transfer taxes. Click here to get involved today.

Vote YES to PROTECT YOUR HOME on November 4^th!

Selling your home in a declining market

Selling your home when the real estate market is down poses special challenges. You face lower prices, lots of inventory, and buyers who have a tougher time qualifying for a loan. These conditions require you to use marketing techniques above and beyond what's typically necessary when home sales are booming.

Get Help From a Professional

When the market is down, it may not be a good time to go the
Get Your Home Ready

It's also not a good time to scrimp on your marketing plan. Your job is to make your home a standout among a larger than normal inventory of homes for sale by anxious homeowners.
Start by cleaning house. If you can't or don't want to do the job, hire service workers to give your home a thorough cleaning and to remove clutter. Hire professional house cleaners, carpet and rug cleaners, fence repairers, handy men or women, window washers, and organizers. Don't forget the garage, attic, and basement. Replace stained carpets, drapes, throws, quilts, and comforters.

Improve but don't overdo it. Home improvements completed before a sale should only include changes that give your home a more contemporary feel. For example, consider:
installing new major kitchen appliances, but only to replace outdated, inefficient models
painting your home in neutral colors, getting new floor and window coverings, and
replacing or repairing a leaky roof.

However, avoid kitchen and bath remodeling jobs, or major renovations and additions. Giving the buyer a cash incentive for later improvements is often more attractive to buyers in a down market than making improvements that may not fit a buyer's lifestyle. The bottom line: Try to strike a balance between the needs of cash-tight buyers who want the home to be move-in ready, and those who will have money to make their own improvements.

Improve your home's your curb appeal. Curb appeal is the first impression your home conveys to prospective buyers. It should arouse in home shoppers an emotional desire to own the home and entice them to cross the threshold.

In a buyer's market, simple cosmetic makeovers don't cut it. Instead, invest in minor home improvements or an exterior staging job to increase the curb appeal. In addition, remove clutter, tidy up the grounds, wash the windows, repair fences, fix driveway cracks, hire a landscaper, and consider painting the exterior of your home. Make it sparkle like a model home.

Stage your home. An empty home with a clean slate may sell well in hot markets when people buy floorplans and a roof over their heads, site unseen. But when sales are down, if your curb appeal gets looky-loos in the door, you want to help them visualize your home as their own. You can do this through the modern marketing technique called "staging." Professional stagers will do any number of things to sell your home more quickly and at a higher price, including redecorating, renting new furniture to show off the home, painting, and landscaping.

You can save money on staging if you've got new or spotless, well-cared for furnishings and accessories, and provided you remove photos, posters, and other personal effects that take away from a neutral setting. But even then, you may still benefit from a professional who arranges it all for the best effect, maybe adding some artwork or furniture here and there.

Marketing Your Home

For maximum marketing exposure, advertise in traditional newspaper classifieds and other print ads, use conventional "For Sale" signage packed with fliers, and conduct a regular open house Saturday and Sunday.

Use online advertising. Post your listing on Craigslist.com and be sure your multiple listing service's (MLS) listing is getting picked up by the National Association of Realtors at www.Zillow.com, and the like. Your real estate agent or broker can do this. Or, if you are selling on your own, you can contact the listing portals directly to try to get your listing posted.
Invest in virtual staging. Take a step beyond your MLS presentation and consider a website, Web page (such as www.vflyer.com), or blog that offers digital images, videos, and a virtual tour of the home to create a 24-hour open house. You can also provide information about the neighborhood, points of interest, schools, crime, commuting, and jobs in the area. When you sell the home, you can give the Web site or blog to the new owner.

Pricing Your Home in a Down Market

Pricing your home in a down market can be tricky. Start by getting an
Explore Seller Financing

In a down market, financing is often tight for buyers. Even creditworthy borrowers get rejected because of rigid underwriting. In order to facilitate a sale, consider financing the deal yourself -- called "seller financing." By financing the sale, you may sell your home sooner and enjoy a financial return for the effort.

How does seller financing work? With seller financing, the seller acts as the lender, but rather than actually loaning cash, he or she extends credit against the purchase price of the home. The buyer signs a promissory note and

You'll need to check with a real estate attorney or other professional proficient in seller financing contracts to learn more and to determine if you can handle the risk.

If You are Desperate: Consider a Short Sale

If you are desperate to sell your home because you can no longer afford the mortgage, and perhaps have already missed payments, consider a short sale rather than foreclosure. In a short sale, you sell the home for less than you owe to the lender and the lender agrees to forgive the outstanding balance on the mortgage.

Even if you use an agent or broker to sell your home, it pays to educate yourself about the process, especially in a tough market. To learn everything you need to know about selling a home in California, get For Sale by Owner in California, by California real estate broker, George Devine (Nolo).
Copyright 2008 Nolo

Home Pricing Stragedy

Many agents price their homes at 299,000 or 299,999.

I think this is a mistake because ... think about how users on the Internet or how agents search. They search ranges of $250,000-$350,000 or $200,000-$300,000 or $300,000-$500,000.

When was the last time you search $200,000 - $299,000 ???? Agent and consumers search $200,000-$300,000 and $300,000-$400,000.

So if we are searching those price ranges and we price our home at $300,000 we get included in both searches (200-300 AND 300-400k). This is my strategy if my home is priced near a 100k or 50k mark because of increased views.

Another strategy that was recommended at a listing clinic was if the home is priced in the middle of a 50k or 100k range, the home should be prices price to the closest dollar even if the amount is arbitrary like:$137,368 or 213,348

Because consumers assume that even priced homes are not carefully calculated and probably just a home price thrown out for the sake of it. When a home is priced to the exact dollar amount consumers assume that some careful calculations were done.