With the spring market starting to percolate (at least it is here in the Peoples Republic of Cambridge!) and interest rates dropping to historic lows thes tips might help you if you're in the market for a home.
Less is more!
If you're new to investing or real estate and don't know the first thing about interest rates, here's a good tip: the higher the interest rate, the more expensive it's going to be. High interest rates mean you will have to pay back more on the money you borrow. Another good rule of thumb is that affordability increases if you use an adjustable rate mortgage (it's easier to qualify this way). Of course, there will be a wide range of prices that you can choose from, depending on what kind of financing you choose.
Not even the Fed knows for sure.
The Fed holds a considerable amount of power, but they can't control everything. Mortgage interest rates are affected by many unpredictable political, economic and social events. So there is no guarantee what direction interest rates will go, despite the forecasts of the experts. Therefore, make your financial decision based on where things are today including your budget, your needs and your future plans.
Locking in rates assures your lowest interest.
If you do decide you want to lock in at a certain interest rate, you will need to complete a loan application and send it to your lender as soon as possible. This must be done so that your commitment doesn't runout before your loan is approved. Follow up and be se sure that the lender is receiving all of the necessary documentation. Get a property appraisal, which usually costs about $300, through your loan agent as soon as possible.
Don't obsess and miss a good real estate deal.
Although rising interest rates can create more problems for home buyers, waiting and hoping for low rates is not necessarily a smart move. You may end up paying a higher price. Also, refinancing is always an option in the event that interest rates come down.
Visit again soon! I have more information that you will need!
Monday, March 23, 2009
Thursday, March 12, 2009
Curb Appeal
Have you been thinking about painting you house or remodeling in some way this spring? If so here are a few facts you should know.
According to the 2008-09 Remodeling Cost vs. Value Report, which was produced by Remodeling magazine in cooperation with Realtor magazine, exterior improvements, including wood deck additions as well as all types of siding replacements return more than 80% of the project costs at resale.
Window replacements return more than 76% of cost at resale. A major midrange kitchen remodel returns 76% and a minor midrange kitchen remodel returns almost 80%. A midrange bathroom remodel will recoup approximately 75% at resale.
The least profitable? Glad you asked. They are home offices and sunroom additions.
According to the 2008-09 Remodeling Cost vs. Value Report, which was produced by Remodeling magazine in cooperation with Realtor magazine, exterior improvements, including wood deck additions as well as all types of siding replacements return more than 80% of the project costs at resale.
Window replacements return more than 76% of cost at resale. A major midrange kitchen remodel returns 76% and a minor midrange kitchen remodel returns almost 80%. A midrange bathroom remodel will recoup approximately 75% at resale.
The least profitable? Glad you asked. They are home offices and sunroom additions.
Thursday, March 5, 2009
The Greatest Day
Finally! It's almost here! The greatest day of the year! I'm talking about Daylight Savings Time. If you've been suffering from SAD (and who doesn't!) all winter you know what I'm talking about. So, if you still wear a watch like I do remember to set it AHEAD Saturday night. Leaving the office on Monday after work is going to feel extra sweet!
Wednesday, March 4, 2009
Cambridge, the place the recession forgot
There is a post on the Wicked Local blog that speaks to what I was planning to write about a couple of days ago. No, really I was. I swear! I guess I better move quicker. http://blogs.townonline.com/cambridge/?p=38822
There is a quote from by of my colleagues in the biz, Arthur Horiatis, where he talks about the pent up demand. That is so on point. The number of single family home sales in Cambridge was down almost 20% last year from 2007 which led to the average price going up last year by 12%. Condominium sales were down a whopping 26%! The prices of condos remained relatively stable increasing only 1% from 2007. This data came from our MLS partners.
What does it all mean? If you are planning to buy this spring look for the possibility if competing bids on well positioned properties that are in good locations and are in good condition. I suspect the 300-550K price range will be extremely competitive and with the interest rates expected to remain historically low properties may be on the market for less time than last year.
There is a quote from by of my colleagues in the biz, Arthur Horiatis, where he talks about the pent up demand. That is so on point. The number of single family home sales in Cambridge was down almost 20% last year from 2007 which led to the average price going up last year by 12%. Condominium sales were down a whopping 26%! The prices of condos remained relatively stable increasing only 1% from 2007. This data came from our MLS partners.
What does it all mean? If you are planning to buy this spring look for the possibility if competing bids on well positioned properties that are in good locations and are in good condition. I suspect the 300-550K price range will be extremely competitive and with the interest rates expected to remain historically low properties may be on the market for less time than last year.
Tuesday, March 3, 2009
10 Questions to Ask Your Condo Association
Before you buy, contact the condo association with the following questions. In the process, you'll learn how responsive-and organized-its members are.
Cambridge Condos
Cambridge Condos
Thursday, February 26, 2009
Welcome!
Hi there! This is my first day with the new blog. This space will be an information center for what is happenning in the Cambridge MA real estate and an open forum for Q&A and lively discussion about the market as well as all things pertaining to real estate. Thanks for being a part of this!
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