How Can You Increase Your Home’s Value for Less?

How Can You Increase Your Home’s Value for Less?

I was just reading the 2013 Cost vs. Value Report from Realtor Magazine and it brought me to a question that sellers are always asking me; what ways can they add value to their houses and what quick fixes/improvements will give them the best return when they go to sell their house. The magazine’s consensus was curb appeal because focusing on the outside of the house is going to bring you the most value.

The article stated the top three mid-range fixes would be replacing the front door, followed by adding a deck and thirdly, replacing the garage door. For upscale fixes, the top three are siding replacement (cement, stucco or stone facade), vinyl siding replacement and window replacement.

If you want to view the rest of the article, follow this link. Now is the time to start on these projects if you are looking to enter the market. If you would like, I can also go through your home and give you a realistic estimate of what your home would sell for. Thanks for watching!

Government Shutdown Risks Hurting The Housing Recovery

Government Shutdown Risks Hurting The Housing Recovery

From: http://www.forbes.com/sites/morganbrennan/2013/10/01/heres-how-the-government-shutdown-will-affect-housing/

By:  Morgan Brennan, Forbes Staff

The government shutdown is here. Whether it’s not being able to get a new Social Security card or visit a national park, Americans will immediately feel the effects. But there’s one bright spot of the economy that stands to be affected as well: housing.

One of the biggest questions regarding the shutdown and how it will affect housing has revolved around the mortgage market, specifically prospective buyers’ access to new home loans. After all, more than 90% of all loan activity is underwritten, insured, or owned by the government and its affiliated entities.

Initially at least, the mortgage market is likely to be only minimally impacted. New loans will continue to push through most government agency pipelines. What will change is how long the process takes, as many agencies expect to experience delays.

Mortgages purchased and securitized by Fannie Mae and Freddie Mac will be unaffected because their operations are paid for by fees charged to lenders. And the Department of Veterans Affairs will continue to guarantee mortgages for Americans that have served in the military since these loans are funded by user fees as well.

But if the government shutdown of 1995-1996 is any indicator, the process will take longer than usual. “Loan Guaranty certificates of eligibility and certificates of reasonable value were delayed,” the VA warned in its September 25th contingency plan.

Where there has been mounting concern is the Federal Housing Administration, which currently endorses about 15% of the entire single-family mortgage market. Several media outlets recently reported that the FHA would be unable to endorse any single-family loans and that no staff would be available underwrite and approve new loans.

That prospect would be somewhat worrisome – if it were actually true. The FHA’s Office of Single Family Housing will indeed remain open for business, albeit with a smaller staff. “FHA will be able to endorse single family loans during the shutdown. A limited number of FHA staff will be available to underwrite and approve new loans,” the report now states. In other words, other lenders’ loans will continue to be insured and some in-house lending will continue to take place at a reduced rate.

The reason for that mix-up: the initial draft of the U.S. Department of Housing and Urban Development’s contingency plan mistakenly stated that single-family loan operations would cease. The report was amended over the weekend.

The FHA’s single-family loan operations are funded through multi-year appropriations, meaning their budget is not tied to the government’s standoff over funding for the new fiscal year that starts in October. On the other hand, what will be more affected is the agency’s Multifamily Housing Office, which is funded through yearly appropriations.

“Because we are able to endorse loans, we don’t expect the impact on the housing market to be significant, as long as the shutdown is brief,” continues the HUD report. “If the shutdown lasts and our commitment authority runs out, we do expect that potential homeowners will be impacted, as well as home sellers and the entire housing market.”

One government lender that will indeed suspend its home loan activity, however, is the Department of Agriculture. The USDA says that no new housing loans or guarantees will be issued through its Rural Development programs in a shutdown. The department also warns that such a scenario could cause “a setback in construction start-up,” and if the shutdown lasts for an extended period, “a substantial reduction in housing available in rural areas relative to population.”

“The government doesn’t generally approve loans, they basically just insure them,” says Don Frommeyer, president of the National Association of Mortgage Brokers and a vice president at Amtrust Mortgage Funding. “For the most part you aren’t going to see much of a hit in the mortgage market unless it goes for a long period of time.”

If it does stretch on, he adds, the worry will be what mortgage rates do in a market shrouded in fiscal uncertainty and how that will affect the home buying, especially in light of recent rate spikes.

Home lending aside, many economists and real estate experts are keeping a close watch on how Americans will react to this shutdown. “Administratively everything should keep moving along, but it’s more about the confidence of consumers and whether they perceive that the government shutdown could lead to a recession,” says Lawrence Yun, chief economist at the National Association of Realtors.

Moody’s Analytics chief economist Mark Zandi recently told the Senate Budget Committee that a partial shutdown could shave as much as 1.4 percentage points off of fourth quarter economic growth if it drags on for several weeks.

Americans’ confidence in their ability to buy and sell homes hit a record high in May, according to a Fannie Mae survey. Since then, as mortgage rates jumped more than a percentage point, that confidence level has plateaued.  If prospective homebuyers fear that the country’s economic recovery will stall, or worse slip back into recession, they will pull back on purchases, worries Yun.

“Home sales is always the first housing variable that changes so one would see sales declining and that would naturally lead to more inventory on the market and eventually put pressure on prices,” he says. But that would be a worst-case scenario based on a long-term shutdown.

Jed Kolko, chief economist at Trulia TRLA +6.43%, notes that if the shutdown lasts longer than a few days, the first places to feel the impact will be local economies with large concentrations of federal government workers. Metro areas like Washington, D.C. and Bethesda, Md., where 19% and 13% respectively of total local wages go to federal employees, would be the feel the negative effects of unpaid furloughs and with them, tightened consumer spending and weakening local economic growth. Though not all will be equally affected, other metro areas like Virginia Beach, Va., Honolulu, Hawaii, and Dayton, Ohio are areas that Kolko is keeping an eye on: “Whether there is a big effect depends on how long the shutdown lasts, how long people think the shutdown lasts, and whether people get back-pay. All those things matter for the impact.”

Still others are worrying even more about the next fiscal standoff, in  mid-October, surrounding the debt ceiling debate and its accompanying threat of debt default by the U.S.  ”With the threat of an impending partial government shutdown and yet another battle over the nation’s debt ceiling, in particular, we are really messing with fire right now—even if it doesn’t seem to bother some legislators,” says Stan Humphries, chief economist at Zillow.

“But the effects of a government default associated with the impending debt-ceiling deadline would be more pronounced because of its greater impact on domestic and international markets. This will rattle consumers and investors alike, slow down the overall economic recovery and further slow the housing recovery, which is already undergoing a moderation in the pace of home value gains due to rising mortgage rates,” he warns.

Middletown, CT Home Tour

Middletown, CT Home Tour

Hey, guys. Thanks for visiting my blog. Today, I am so excited to show you around Middletown. This beautiful town is just 15 miles south of Hartford on Route 9.

Middletown is really a one-of-a-kind place. Its combination of diverse culture, historic architecture and modern vibe makes it inviting to all people.

Main Street is lined with outdoor seating and cafes. College students often grab a cup of coffee and study. Families enjoy one of the many restaurants.

When Sharon Hunt was looking for a place to raise her three children as a single parent, she wanted a community with diversity and culture. Not only did she find that in Middletown, but the schools system went above and beyond to welcome her children and make them feel comfortable.

There are plenty of activities for families. The YMCA has different programs for children of all ages. Another great place is the Kid’s City Museum; there are arts and crafts, science and so many other wonderful things to enjoy as a family.

Middletown is also home to the beautiful 200 acre Wesleyan University campus. Beautiful historic buildings adorn the campus.

The town isn’t just for families, though. Whether your single, a professional or retired Middletown has something for you. The chamber of commerce is very pro business and strongly supports revitalization of the community.

One of the best things about this incredible town, though, is its real estate. Homes are affordable and inventory is abundant. There is plenty of new construction. So, give me a call. Let’s see if a home in Middletown is right for you.

Thanks for watching!

Fannie Mae Homepath Properties

Fannie Mae Homepath Properties

Hey, guys! Welcome back to my video blog!

A lot of you are searching online for the perfect home. Have you found it yet?

Through The Federal National Mortgage Association, more commonly known as Fannie Mae, I know about some great homes before they are even listed. In fact, there are four homes coming on our market just this month!

So what is Fannie Mae? It’s a government-sponsored enterprise that was designed to promote first time home ownership.  What’s great about this program is they are available to owner-occupants first.

Some of these properties need a lot of work; others just need a fresh coat of paint. We have access to these homes first and can help you. That’s why you should contact a realtor first; let them know what you’re needs are! We can help you find that perfect home.

Is 2013 the Right Time to Buy a House?

Hi everyone. Welcome back to our video blog where we are bringing you relevant information to make informed decisions in the marketplace.

I’ve been getting asked a lot lately if now is the time to buy a home. First, let me start off by saying that question is a personal decision. Do you have a steady job that will cover all your living expenses? Do you have 3-6 months of cash reserves in the bank if I were to lose my job and cover housing payments, car payments, student loans, etc.

If the answer to that is yes, then, let’s move on to the next deciding factors when determining whether to buy a home now.

One of the other common themes you have been hearing about lately are interest rates. We are experiencing incredibly low rates. If you received a $300,000 loan at 30 year fixed rate of 3.5%, over the entire life of the loan, you would pay $484,968.

Now, if rates increase to just 4.25% that same loan will end up costing you $531,292. That’s a $46,327 price difference for that same $300,000 home.

Another common question I keep hearing is ‘are home prices the lowest now and are they starting to trend upwards?’

I can’t speak nationally, but here in Connecticut prices are starting to steadily increase. It is turning into a sellers’ market. Right now, with the lowest interest rates and all of the inventory, you are getting a lot of bang for your buck.

So, to answer your question about whether 2013 is the year to buy, in my professional now is the best time. You are getting the biggest bang for you buck and the lowest interest rate.

If you have any questions please give me a call or shoot me a quick email! Thanks for watching!

The Closing Costs of Real Estate

Hi everyone. Welcome back to our video blog where we are bringing you relevant information to make informed decisions in the marketplace.

Today, I wanted to speak more toward first time home buyers. I know a lot of you are excited to go out and look for homes and look online, but it’s really easy to find a home and fall in love with it. What some of you are forgetting, though, is about the financial aspect. The worst thing you can do is fall in love with a home and then be able to pay for it!

Most first time home buyers use FHA to purchase their home and only put 3.5% down. So, if you purchase a $200,000 home, you are only paying $7,000 out of pocket.

But what about the closing costs?

I wrote down a list of the typical fees during a closing. My numbers are a little on the high side, but it can give you an accurate view of how much things may cost.

·         Attorney fees: $650

·         Title Search: $225

·         Home Inspection (Which I highly recommend): $550

·         Appraisal/Credit App: $450

·         Tax Escrow: $3,600

·         Prepaid Interest: $400

·         Home Insurance (You will have to pay the first year upfront): $960

·         Bank Fees: $600

Now as I said, many of these numbers are only the higher side, but they total to be about $7,500. So when you are making your down payment you need not only the $7,000 for the 3.5% down but to also include those closing costs.

FHA does allow you to add closing costs to the loan through a credit from the seller. We’ve seen this many times before.

If you have any questions about closing costs or want to know more about what closing on a specific property will cost give me a call at 203.980.6886 and I’d be more than happy to help!

Video Tour of Milford, Connecticut

Hi everyone, welcome to our video tour of Milford, Connecticut!

Milford is located in the southwestern corner of New Haven County and it's and hour and a half away from New York City. This makes it a great commuter town!

Milford is known to be a small city with a big heart. There is so much going on and so many things in the downtown area whether it’s eating at one of the great restaurants, grabbing a cup of coffee or just reading a book at one of the beautiful parks.

We spoke with Darlene and Sue, owners of a local business. They said Milford is a warm and welcoming city with so much to do. There are young families and great family events on the weekends.

Sally, a student at one of the two public schools in Milford, says she loves being able to walk to school. She also enjoys all the music festivals and restaurants in the area.

Milford has an older established area known as Woodmont. Woodmont is a very popular vacation spot.

Besides all the events going on, Milford is also great for its affordable real estate. Whether you are looking for your first home, a beachfront property or a retirement community, Milford has it all!

I wanted to thank everyone for joining us in our tour today and if you have any questions about the real estate market in Milford, please give me a call at 203.980.6866 or shoot me a quick email at jonathan@carbutti.com

The Home Buyers Guide

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A lot of first time home buyers are jumping into the buying process too quickly.  Many are attending open houses without representation, talking with agents who have the seller’s interests at heart, and not understanding how the home buying process works.

We invite first time home buyers or any buyers to come in and talk to one of our real estate expert advisors and we’ll go over the Home Buyers Guide.  We’ll explain what is expected of you and what is expected of your real estate professional.  The guide also covers buyers’ brokerage in the state of Connecticut.

The guide has a flow chart which helps you step-by-step from beginning to close in the home buying process.

At Carbutti Real Estate, we work our hardest from contract to close, negotiating with the seller, getting inspections, meeting deadlines, etc.  It’s our job to negotiate on your behalf, to get you everything you want out of the contract.

Whether you’re a first time home buyer or just have some questions, give us a call at 203.980.6886 and we’ll help you through the home buying process.

Wallingford Market Update

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The Wallingford market has changed in the past 60 days.  Today, the median price of a home is $319,000, while just two months ago it was $286,000.  The market has shifted toward a sellers’ market.

While there are 173 homes currently on the market, those home are not necessarily the kind the buyer wants.

The fastest and most popular selling home is the 4 bedroom, 2.5 bath and master bedroom suite.  These kinds of homes are the quickest selling and receive multiple bids.

If you are looking to sell, now is the time. Do not wait. There are buyers and decision makers who will buy your home fast.

So if you want to sell and want an honest opinion on what your home could sell for, call me at 203.980.6886 or email me at jonathan@carbutti.com

HUD Homes Offer Some Homeowners Once-In-A-Lifetime Deals

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As we move further and further away from the buyers’ market that so many buyers have come to know and love over the past several years, there is still some promise to finding great deals out there. The answer lies in HUD homes. Believe it or not, you can find a fantastic home that, with just a little bit of TLC, can be almost instantly converted into your dream home.

Now, I’m sure most homebuyers probably shy away from the sound of needing to do any work on a new home, but that “little bit of TLC” is simply cosmetic things like changing the floors or installing new carpet and putting on a fresh coat of paint. With the distressed property market still prevalent in some areas and with some (unfortunate, sadly) situations, we are still seeing some really nice, quality homes where the homeowners simply couldn’t keep up.

What are some of the benefits of getting a HUD home?

For starters, it will cost you a LOT less to buy a HUD home than it would, had it been listed at fair market value.

Second, you can expect to increase the value of your new HUD home very quickly once you make the updates needed.

Finally, as our market continues to change and the economy gets stronger – the chance of finding great homes at such discounted prices may not be as widely available as it is right now. Combined with today’s still very low interest rates, it’s a win-win situation.

A Few Tips to Keep In Mind When Considering a HUD Home

Be sure to have the home properly inspected. Look for structural issues, major plumbing problems or anything else that might take away from being a solid investment.

Request your Realtor® to study the neighborhood and provide reasonable comparable properties to gauge what you might expect in terms of value after you’ve fixed up the place.

Read all rules, restrictions and requirements before placing a bid online and if you need, run it by a real estate professional to be sure you’re not missing anything.
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If you’d like to sit down to discuss HUD homes, how you can find a great one and what next steps to take once you have found a great home – call, text or email me and I’d be glad to sit down to discuss it with you! Get started today at www.HudHomeStore.com.