Are mortgages rates too high?  Apparently, a lot of buyers think so.  As a result, many are sitting the sidelines waiting for them to drop.  Let’s first look at some quick mortgage rate history.

Mortgage Rate History

Freddie Mac provides mortgage rate history going back to 1971 when rates averaged 7.5%.  In the 1980’s the rate skyrocketed reaching a peak of 18.63% in 1981.  In the 90’s rates settled down and averaged out around 6.49%.  In the 2000’s, rates came down following the subprime lending market crash and averaged around 5%. In the 2010’s the rates started around 5%, bounced around and ended around 5%.  Then we all know that Covid hit, and rate fell to historic lows.  Today’s rates are hanging in the 7% for a 30-year fixed mortgage. The predictions for next year are for rates to settle somewhere in the 5’s by the 3rd quarter.  Historically, this is where rates like to hang barring atypical events.

Is Now a Good time to Buy?

Now I’m going to tell you that this is a good time to buy even with rate in the 7’s.  Why is that?  When rates were low sellers were in charge.  They were not giving any concessions.  They offered no help with closing costs, only made repairs necessary for the buyer to get a loan, many received over asking price and many asked to leased back their homes.  I had one seller who after getting $30,000 over their asking price, also got to stay in their home for 2 months past the closing date for free!  Not to mention buyers had to make split decisions on whether to make an offer.  The idea of sleeping on it or going back for a second look were out of the question.

The landscape has changed.  Buyers have more homes to choose from.  Sellers are accepting offers below their asking price, agreeing to make repairs, and many are offering to pay $10 – 15,000 for buyers’ closing costs and prepaids.  Some are even offering to buy down your mortgage rate.  Add that all up and you can see some serious savings along with taking your time to find the perfect home for you.

Predictions for the Near Future

The lack of competition now means that when mortgage rates do ease, buyers can expect a flood of pent-up demand to wash over the market.  Real-estate experts say high mortgage rates are probably here to stay for some time, and even if they drop below their current elevated levels, a return to the days of 3% is unlikely. This is especially true as the Federal Reserve maintains its outlook for higher-for-longer interest rates to keep a lid on inflation.

Are mortgage rates too high?  They are higher than we would like and are likely to start coming down later next year.  However, they are not too high for getting seller to negotiate and refi later.  I say take advantage of sellers not having the upper hand.  Buy when and what you can afford.  Marry the house, date the rate!

Call me today if you are ready to look and work a deal!

Real Sign used by a client of mine when their home was for sale in the 80’s!

Congratulations, you just purchased a new home!  Once you get unpacked and settled in, there are some important things you should know about your new home.  Take some time to get acquainted with how your new property operates. The more you know, the less caught off guard you’ll be when problems arise and the faster you can return to the finer things in life.

1. Water Shut Off Valve – In a plumbing emergency, you’ll want to know how to quickly find this valve and turn it off. Check for it in the garage or near your hot water tank.  Often times in Florida, you will find it outside in the ground.  It’s a good idea to turn this off when you are going to be away from your home for an extended period. It’s also a good idea to do so when fixing or replacing faucets or toilets.
2. Electrical Panel – It’s good to know the location of this as well.  Some homes have more than 1.  If yours isn’t properly labelled, you will thank yourself later when you take the time to do so.  If there were any electrical concerns brought up on your home inspection report (because you took the advice of a good realtor and had a home inspection done), have them evaluated by a licensed electrician.
3. Gas Shut Off – If your home has natural gas, it’s important that you know where your main gas supply is located. In a single-family house, you can usually find it on the side or back of the house, just before the gas meter. Gas leaks can be dangerous and even fatal. Once you’ve turned off the valve, go outside call the gas company.  Natural gas is naturally odorless, but there is an additive to give it smell for safety reasons.
4. HVAC Filters – Replacing your HVAC filter on a regular basis is one of the best things you can do to keep it running efficiently.  Find the location and size of all the intake filters and keep a supply of new ones on hand.
5. Smoke Detectors – The National Fire Protection Association suggests placing a smoke alarm inside each bedroom, outside each sleeping area, and on each level of your home.  If smoke alarms are already installed in your home, check their expiration dates and test them to confirm they are working properly.  If they have batteries, replace them now and then again, a year from now.  Not only will this help keep you and your family safe, but it will save you from the obnoxious beep at 3 a.m.
6. Attic Access – Whether you want to examine its insulation, have a bunch of boxes that need a home, or are hearing strange animal sounds, it’s important to know where your attic is and what it has to offer. But before you start toting Christmas decor up there, verify that the floor is structurally sound, and the space is properly ventilated. To test the latter, touch your hand to the ceiling of a room below the attic on a hot day; if it’s warm, it may be a sign your attic is storing heat.  Installing an attic fan may be a good idea to save you on your AC bill.
7. Underground Lines – This is a big one in Florida.  Before you dig, you will want to find out where your waterlines, sprinkler lines, cable line and more are located.  You may be surprised to find out how close to the surface they are.

This is just a few of the important things you should know about your new home.  If you took the advice of a great real estate agent, and had a home inspection done, the inspector probably included some great information in the report.  I would go back and read it.

Should you paint your home before selling?  If it needs it, yes!

Exterior

Let’s first talk about the exterior.  Any painted surfaces such as siding, trim, exterior doors, should be painted if they are chipped, faded or dirty beyond cleaning.  The exterior of your home is the first impression for a potential buyer along with your landscaping.  Poor appearance on the exterior gives the impression that your home has not been maintained.  Data shows that painting your exterior increases selling price and is a great return on investment.  Be careful of color choices – if in doubt, contact a local respected realtor for advice.  If your budget does not allow for painting the whole exterior, then focus on cleaning, touching up damaged areas, painting the trim and the front door.

Interior

What about the interior?  Painting your home’s interior can provide as great return on investment.  Take a really good look at your home’s interior.  I think you will notice chipped and scuffed paint especially on trim.  Door and cabinets can often show signs of paint wearing off.  You may need to paint to change over that room that you painted in your football team’s colors.

Color Selection

Again, a good realtor can guide on what colors would be best.  Any decorator will tell you that white is a complicated color.  I typically use a decorator to pick colors that best coordinate with the trim and floors.  You want there to be cohesiveness.  Lighter colors also make rooms look bigger.  A fresh coat of paint can make the whole home feel clean and well kept.  I will tell you that even property appraisers stay abreast of color trends and use that to help decide when the last time was your home was probably painted.

Hire a  Pro or DIY

Hiring a professional painter can be one of the cheapest upgrades you can make.  However, if you decide to paint yourself, please take these words of advice.  Use quality paint, use a quality brush (I prefer the Purdy brand) and protect your floors with a drop cloth.  Please take the time to remove switch plates and outlet covers before painting.  If you are not steady with a brush, tape off all trim with painter’s tape.  Nothing screams DIY like paint on switch plates and trim.

Nothing can transform your space as quickly or cost-effectively as a fresh coat of paint. Whether you’re putting a fresh coat on your front door for a great first impression or painting over a hot-pink bedroom, the answer to “Should you paint your home before selling?” is almost always yes.  There is great power in paint!

Are Homeowners’ Associations a Good Thing?  I would say that answer depends on what is important to you.

Let’s first talk about what a Homeowners’ Association is.  A HOA, or Homeowners’ Association, is a private organization typically established within a residential community or neighborhood to manage and enforce certain rules, regulations, and standards for the properties within that community.  Membership is usually mandatory but can be voluntary.

Some of the benefits of a neighborhood HOA may include:

Amenities: Many HOAs provide amenities such as pools, gyms, parks, club houses and common areas.

Security:  Some HOA fees cover the cost of a security system.  This could be as simple as a gate at the neighborhood entrance or could include security guards as well.

Maintenance Assistance: Many HOAs are responsible for maintaining and managing common areas within the community, such as parks, swimming pools, tennis courts, and landscaping. The cost of maintaining these areas is typically covered by the fees paid by homeowners.

Sense of Community: HOAs can foster a sense of community by organizing neighborhood potlucks, block parties, and other events. They may also mediate conflicts to ensure everyone in the neighborhood’s needs are met. Some offer neighborhood watch programs as well. This can be helpful for anyone who wants to have a close relationship with neighbors.

Protected Home Values: HOAs often have an architectural review committee that reviews and approves or denies proposed changes or additions to individual properties, ensuring that they conform to community standards. This can ensure cohesion and boost the overall aesthetic. HOA’s rules can also ensure everyone in the neighborhood maintains homes and curb appeal, protecting property values throughout the neighborhood.

Disadvantages of an HOA may include the following:

Fees, Fines, or Assessments: HOAs charge monthly or annual fees to cover things like maintenance and management costs. HOAs are also allowed to charge fines or special assessments for a breach of regulations or to cover unexpected costs like repairs or improvements. Fees can vary significantly from one HOA to another, and some will be more aggressive in applying fines than others.  Some HOA charge a first-time buyer’s fee.  They may even go so far as to require the board’s approval before you can purchase in the neighborhood.

Exterior Restrictions: HOAs can have strict rules about building renovations, exterior modifications, paint colors, landscaping, and even lawn decor or parking on the street.   Some rules may include no parking your boat or RV in your driveway.  This can feel restricting to some homeowners.

Lack of Property Versatility: Some HOAs will have rules restricting long-term renting, short-term renting (like an Airbnb), long-term guests, and even dog breeds, among other things. This can make your property less usable than a home outside of an HOA’s purview.

Rule Interpretation: HOA rules can be complex and, at times, subject to interpretation. This can lead to confusion and frustration if not addressed correctly. Changes in leadership can further complicate matters if rules are enforced differently than in the past.