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Mortgage rates continue to go lower.
According to Key Savings Bank a 30 year fixed rate mortgage is down to 4.275%.
How does a lower interest rate translate into more buying power for you?
$100,000 mortgage at 4.275% = $493.40 payment
$100,000 mortgage at 5.275% = $553.75 payment
Not only does a lower interest rate mean a lower payment, but it also means an increase in your buying power. Purchasing a new home with a 4.275% rate allows you to purchase a home for $112,000 for the same payment as a $100,000 home with a 5.275% rate.
INCREASING your buying power by 11%!
No matter what your goal, a low rate means only good things for you.
The question that everyone wants to know is: What’s the next move for interest rates? Higher or lower?
The answer is–we don’t know. What we do know is rates will go up faster than they fall.
2010 has been hectic and at points, turbulent, here in the Wisconsin Rapids area. I thought now would be a good time to take the pulse of the Wisconsin Rapids real estate market as we head into September and leave the ‘busy’ season behind.
Below you’ll find a month-by-month recap for the Wisconsin Rapids area. For your viewing pleasure I’ve broken it down into two separate graphs.
The first shows the number of homes sold during each month (so far) of 2010.
The tax credits offered to both first time homebuyers and homeowners definitely brought more people to the closing table. You can see that reflected in an increase of home sales from March through June, compared to Wisconsin Rapids home sales in 2009.
Below you can see the average sale price for each month.
There’s not much information we can gather from the average sale price on a month to month basis. But we do see a spike when it reached over $120,000, but otherwise on average it hung around the $105,000 area. (FYI–still a very good number)
What’s your take on the results?
Does a ramped up May-July of 2010 make up for a slow August (and possibly September)?
Or does last years August-October offset the slower spring/summer real estate season in 2009?
I don’t know if anyone has the ‘right’ answers. I do think the tax credits have caused more questions than answers. I would think the ‘right’ answers can only be answered on an individual basis.
Everyone will benefit as we pull ourselves away from the tax credits because ultimately we want a successful Wisconsin Rapids real estate market to be held up by people (like you) who are buying and selling a home because YOU want to and not because the government is throwing money at you. (Although, if you receive(d) some cash…take it and run…or fly…or improve…or tithe…or save)
And if answers can only happen at an individual level–Are we able to call our overall market improved IF we’re calling our market improved based solely on the people who benefited from the tax credits?
I believe we have a simple chicken and a cart conundrum…or was it a horse and an egg?
That’s what my old football coaches used to yell as I was about to make a tackle.
Because otherwise I’d be slowing down before I reached the runner…I’d have no momentum and no power to stop the person breaking through the line of scrimmage.
In a nutshell the running back would have the advantage and instead of delivering a blow I’d be on the receiving end of one. Which, for obvious reasons, is no fun at all. (In case you didn’t know…)
So instead my focus was on a point past the ball carrier and I did my darnedest to get there. True, I usually didn’t reach that imaginary spot — but it did help me win more battles than I lost.
By focusing my efforts on running through the person, the tackle would usually take care of itself. Maybe I wasn’t able to wrap my arms all the way around. Or pull their legs up into my chest. But the other person knew what just happened…
My point is — if you only aim for the runner (or at just putting your home on the market) then you won’t make the tackle (or the sale). But if you aim past the runner (at actually selling your home) you will.
Putting your home on the market isn’t the point. It’s only the beginning.
Instead you should focus on the end result — getting an accepted offer. It’s the follow through that will get you to that point.
For example, what will you do if you have no offers the first 3 weeks your home is listed?
What if comments from showings aren’t what you expected? Will you make changes?
How will you react if your agent brings up a price reduction? Or asks you to paint a bedroom?
To often we race to the starting line and completely neglect the actual point of the race — to actually finish.
What will you do so you can finish the race?
I’ve been thinking a lot lately about my exercise program…or my lack of an exercise program. Unfortunately, I’m not getting any younger. Like the rest of you, I’ve tried. It doesn’t work for me either. Don’t get me wrong, I like exercise. Or maybe the thought of exercise.
Back in my twenties, I was a workout fiend. You’d find my brother, my neighbor and me pumping away in a home gym we put together. But then things change. I graduate from college and find a job in Mauston. With a new job and apartment living finding a place to workout and time, for that matter, becomes difficult.
Fast forward a few years and I purchase my first place. So I buy a couch, table and chairs and a squat rack and weights. That’s what the rest of you did when you bought your first home? Why do I only hear crickets?
Now I have everything I need to stay in shape, or to even change my shape a little. Nothin’ gonna stop me now…
The first summer goes pretty well. I found Crossfit the fall before and I’m going strong in the garage gym that spring and summer. I’m in the best shape of my life. Not quite as big, but my soon to be wife says that’s ok (something about not having a neck before). I’m more athletic than I’ve ever been. I’m doing things I couldn’t do before.
Now winter arrives. The garage gym isn’t as much fun anymore. For obvious reasons. Brrrr…
I slack…or maybe more accurately, stop working out. It’s too difficult to head into the freezing garage for a workout. It’s a whole lot easier to stay in the warm house and watch CSI: Las Vegas.
Oh, spring how I love thee… I’m ready. Ugh, but starting is so difficult. I really want to fast forward a month and start from there. But I can’t, so I procrastinate…
A little more procrastinating…
But why start now? It’s been sooooo long… I’m not happy with myself… so to punish myself, I still don’t workout… WHAT? Does that sound reasonable? Apparently it does because I never really get around to starting…
Have you lived through something similar? Don’t lie. If we truly want something, we’ll start. But it’s too easy to push it off. To say you’ll start next week or next month (my wife says this is what I’m doing right now…don’t tell her but she’s right)…
And time goes by. Maybe years. Now a decade or two…
This is where I bring my story back to your home… and I’m going to hit you in the face with a little fact:
Your home is EXACTLY like your exercise program.
At some point your home will be sold. Realistically you’ll be selling it in 5-10 years. If not then, it’s when your kids move out. Or when it becomes too difficult to manage all those stairs. Or when 3000 square feet is too much.
The question is, what condition do you want your home to be in when you want to sell?
Do you want it in peak physical condition so you can get top dollar?
Or in good shape, so a little work over the course of a couple months can get you top dollar?
Or average so it looks like every other home out there? The ‘someone will buy it at some point’ condition.
Or with the bulging waistline, high cholesterol, maybe a little adult onset diabetes… The ‘better days were decades ago’ condition.
I know starting a program is difficult. I know that finding time can be difficult. I know that at times it’s going to cost more money than you may want to spend. I know that researching and finding the best program (updates) is better than blindly following anyone or thing and regretting it later.
But it’s important. Just like exercise can add years to your life, a proper program for your home can add thousands of dollars to your bottom line AND cause you significantly less stress as well.
And I know that you know that this is what the 10 years from now you really wants.
Now, I have to wrap this up and make a plan to hit the weights AND finish painting and installing the door trim I’ve been putting off.
What’s your plan?
First, I have to thank Chris Brogan for this post. And I guess I’ll thank Julien Smith for his post…since it did help Chris write his.
Now, they both were talking about what takes our attention. How WE reach others.
As a Realtor, I’m constantly with my phone. My phone rings frequently and at all hours. Emails arrive throughout the day and night. It can seem like I’m running in a circle or chasing my tail or slogging through mud…any way you slice it it can seem like I’m getting no where.
But as I picture myself chasing my tail my mind shifts from the ‘ME’ to the ‘YOU.’
I’ve been on a couple listing presentations this week and today I’m reflecting on what it is you, my client, needs and wants from the Realtor you task with selling your home.
As a 30 something Realtor I’m fully versed in the ‘NEW’ part of selling real estate. I’m on Twitter. Wife and daughters bought me a Flip video camera for my birthday last month. So videos will be forthcoming shortly. I’ve had this blog for a couple years. I use this website when I work with owners who’s homes haven’t sold.
So I get NEW.
But you want ‘NOW.’ You want your home sold NOW. Not in a month, or six…
I have to ask myself ‘Why’ for each and everything I tell YOU when we meet that differentiates myself from the 45+ technologically illiterate Realtor down the street.
Here’s why I use:
A Single Property Website: the MLS offers only 504 characters for your home’s description. I can use an infinite amount for your home on the site I create. Plus, by purchasing a unique URL from GoDaddy I can make it easy for buyers to find it. See the latest and greatest listing for www.RapidsHome.com.
A Professional Photographer: I’m a Realtor. I sell homes. I’m a marketer. Wisconsin lets me dabble a little in legal contracts. But a photographer? No way. Every picture says a thousand words. Not when a Realtor is behind the lens… I shell the money out to get you the very best pictures possible. And the difference is amazing.
These are two (of what I feel are many) reasons why I’m different than your average agent.
Plus, First Weber offers many unique advantages than other brokerages here in the Wisconsin Rapids area. Want proof? See for yourself who sells the most real estate in Wisconsin Rapids.
All of which will help you get the ‘NOW’ that you’re looking for.