People matter...

This story in Realtor.com about the founder of forsalebyowner.com selling his own personal home through a real estate agent made me smile and think about how far this industry has come in the last 10 years or so.  The only thing that is constant in life is change, but what always holds true is that people make a difference in where you end up when it is all said and done.  No web site will ever take the place of a strong local expert that can account for nuances in the market with real life experience and a pure gut-feel.  I don't just feel this way about real estate either.  I think it is true in many industries where market pricing is widely unregulated. 

Some time ago a friend of mine did some research on the accuracy of Zillow's Zestimate (not sure it that is spelled right...) for home value.  I have nothing against that web site, and frankly think there are times when it is a very useful tool.  At that time however, their own disclaimer said there actual published value for any particular home in New Castle County was generally within 20% of the actual sale price 50% of the time.  Surprised? 

When you hire a Realtor to get your home sold, the 'sold' part is the end point in the process.  Establishing fair market value, and actually obtaining that amount from a qualified and motivated buyer is typically the largest part of the process where the true value in the service is conveyed.

Real Estate Tip: Interior Decorating

Many people recognize a decorating style they like when they see it, but they find it difficult to combine colors, fabrics, furnishings and window treatments to create the total finished look they want.

Where can you find a good decorator? If you like the interior of your friends' home, ask them for recommendations. Many communities have decorator showcases where you can see first hand the work of several local designers. Furniture retailers sometimes hire professionals to assist their customers.

Before you commit to working with a designer or decorator, sit down and discuss your taste and goals, their fee structure, and your budget. Pay particular attention to whether the person is an active listener and communicates well. Whether you are trying to make your home look wonderful in order to sell it or want to fix up a new home, the investment in professional advice can save you costly mistakes and make your home a reflection of your good taste.

Mortgage rates probe new lows...

By Inman News
Inman News®

Mortgage rates plunged to new all-time lows this week as investors in bonds that fund most home loans reacted to news that the economy grew more slowly than expected during the last three months of 2011.

Freddie Mac's weekly Primary Mortgage Market Survey showed rates on 30-year fixed-rate mortgages averaged 3.87 percent with an average 0.8 point for the week ending Feb. 2, down from 3.98 percent last week and 4.81 rcent a year ago. That's a new all-time low in Freddie Mac survey records dating to 1971.

Rates on 15-year fixed-rate loans averaged 3.14 percent with an average 0.8 point, down from 3.24 percent last week and 4.08 percent a year ago. Rates on 15-year loans have never been lower since Freddie Mac began tracking them in 1991.

For five-year Treasury-indexed hybrid adjustable-rate mortgage (ARM) loans, rates averaged 2.8 percent with an average 0.7 point, down from 2.85 percent last week and 3.69 percent a year ago. That's a new low in records dating to 2005.

Rates on one-year Treasury-indexed ARM averaged 2.76 percent with an average 0.6 point, up slightly from last week's record low of 2.74 percent. At this time last year, the one-year ARM averaged 3.26 percent.

"Most mortgage rates eased to all-time record lows this week as fourth-quarter growth in the economy fell short of market projections," said Freddie Mac chief economist Frank Nothaft in a statement. "The gross domestic product rose 2.8 percent in the final three months of 2011, below the market consensus forecast of 3 percent, while consumer spending in December was flat. One bright spot, however, was that fixed residential investment increased for the third consecutive quarter and residential construction spending rebounded in December, rising 0.7 percent."

Looking back a week, a separate survey by the Mortgage Bankers Association showed demand for purchase loans was down a seasonally adjusted 1.7 percent during the week ending Jan. 27 compared to the week before. Demand for purchase loans was down 4.3 percent from the same time a year ago.
Requests to refinance accounted for 80 percent of all mortgage applications, down from 81.3 percent the week before.

"The Federal Reserve surprised the market last week by indicating that short-term rates were likely to stay at their current low levels until the end of 2014," said MBA chief economist Michael Fratantoni in a statement. "Longer-term Treasury rates dropped in response, and mortgage rates for the week were down slightly as a result."