Whither Goest Thou? A Mortgage Rate Questionnaire

This is a multiple-choice question quiz: which is true – A, B, C, D, or E?

A) If the headline reads MORTGAGE RATES ON THE RISE! it means it’s time to buy (quick) before they go up further!

B) If the headline reads MORTGAGE RATES FALL! it means it’s time to buy (quick) to cash in on the savings!

C) If the headline reads MORTGAGE RATES UNCHANGED! it means it’s time to buy (quick) while the rates are stable!

D) All of the above.

E) None of the above.

My answer is below (and it’s not even upside-down), but before anyone even looks down there, I’d like to mention that there is an equally valid second question, which would read ‘sell’ instead of ‘buy.’

This week is a good time to be pondering both questions. It looks as if the long-lived swoon in mortgage interest rates is about over. “Looks as if” is a carefully chosen phrase, because what seems inevitable in finance has a strong track record of proving wrong. One of the dangers that our current environment presents is that everyone has been correct (about mortgage rates staying in the cellar) for such a long time that they’ve grown accustomed to rates being predictable. They aren’t.

                                                                             So the answer to the question is (drum roll, please): E). 

It’s a trick question: when it comes to buying or selling a home, doing anything “quick!” just because of a one-week dip or rise in mortgage rates is a bad idea. It’s a big decision, one that should be entered into with care and forethought. But if you were to remove the “quick!” from the question, I’d personally tend a little more toward D), but only because I don’t think local mortgage rates are likely to fall right away. And rates today are still, historically low. 

Good time to buy, good time to sell. Thoughtfully.

By Gina Odom, Realtor

Maximizing Value Helps When You Go To Sell!

On Thursday, Bloomberg’s online news service confirmed what we had been hearing in more general terms: “Sales of previously owned U.S. homes climbed more than forecast in May…and prices jumped, indicating more progress for residential real estate.” Agents here in Berkeley would also not have been surprised at the national surge in selling prices “by the most since October 2005”. If you were already inclined to sell your own Bay Area home, it looks more and more as if this summer will be a propitious time to jump on the opportunity. 

As Realtors gear up to maximize the market’s improvement, homeowners are also weighing some of the more popular alternatives for boosting valuations when it comes to selling — 

• Prospective homebuyers are increasingly energy savvy, so when new appliances need to be updated prior to sale, the more energy-efficient they are, the more worth highlighting they will be. Us "Green-Minded" real estate agents know how to emphasize a property’s ‘green’ attributes.  
• If you have an attic or a basement that is currently serving little purpose, conversion can pay off. Basements are often the more affordable option since they call for little structural remodeling. Conversions can be into a games room, office, or utility area. Attics are often best converted to bedrooms or office space (or at least staged to suggest the possibility
• Landscaping including features like decks can be a huge selling point. If you are prepared to engage in a little DIY, adding a deck can be among the most cost-effective of improvements. According to HGTV, the cost of a professionally built deck starts at about $15 per square foot, with more elaborate installations featuring costly hardwoods or composite materials running closer to $35.  

Even if you do not intend to sell, a little extra money invested in your home may be a dollar-wise idea. Thoughtful investments can enrich your own living experience AND attract higher prices when the time comes to move on. If you’re looking for a real estate agent call me today to go over other improvement ideas.

By Gina Odom, Realtor : 415.307.1423