Pacor Mortgage brings you RatePulse, the video series that gives you the inside scoop on this week’s movers and shakers in the mortgage industry.

It’s summer, but the housing market still seems stuck in the deep freeze of winter. Thousands of homes languish on the market with no buyers in sight. Desperate owners wonder: “Why isn’t my house selling? What’s wrong with it? Will it ever sell?” Granted, the entire economy has tanked and unemployment is high. But there are reasons why some houses don’t have a ghost of a chance. Here are five top reasons:

1. Overpriced

Real estate agents nationwide agree that in this buyer’s market the No. 1 deal breaker is price.

“In order to sell today, the price of a home must be compelling, not just competitive,” said Ronald Phipps, the 2010 president-elect of the National Association of Realtors.

“The market now is all about price and value. Sellers should not be offended by very low opening offers. Rather, they should focus on where the negotiating ends,” said Phipps, principal broker of Phipps Realty in Warwick, R.I.

He advised sellers to revisit their price every 30 days.

“In setting a price, some sellers think $299,000, for example, will attract more attention because it is less than $300,000. Ditch that retail mentality. You could miss the 90 percent of buyers who search online and may be clicking on homes in the $300,000 to $400,000 range.”

Phipps noted that prices seem to be stabilizing across the country. But some real estate experts see the possibility of more slippage.

“Home selling today is a price war and a beauty contest. You have to win both to sell,” said Ian Robinson, branch manager of the Coldwell Banker office in Northbrook, Ill. “You must be ahead of the curve price-wise. Prices of homes that sold six to 12 months ago may be too high.”

“It’s important to be the best deal in the neighborhood. You don’t want to be the last on the block to lower a price,” said Judy Stephens, vice president of ERA Stephens Properties in Houston.

2. Bad curb appeal

Potential buyers will keep on driving if poor curb appeal suggests the house may be in bad shape too.

“It’s all about first impressions,” said Gail Wittig, a broker associate at Michael Saunders & Co. in Sarasota, Fla. “People have to fall in love with a house.”

That means manicured lawns are a must, plus trimmed trees and bushes, new mulch and no weeds.

“There should be no chipped paint on the front door or rusted hardware. Some people even forget to sweep the front porch,” Wittig added.

If necessary, the exterior siding and trim should be freshly painted.

“Paint is cheap, and you will get your money back,” Wittig added.

“If you have a front porch, put a rocking chair out there to make it look more inviting,” Stephens said. “Make sure there are no rakes, bikes or toys in the front yard.”

3. Ineffective marketing

With the market oversaturated, the challenge is to stand out from the crowd. Poor marketing can spell doom even for attractive properties.

Phipps said sellers must be aware of how buyers are searching, especially on the Internet. “A compelling online presence is necessary, including photos and floor plans. Avoid using any out-of-season photos.”

In today’s high-tech world, the Internet often provides the first showing of a home on the market. Sellers should make sure their home is on as many Web sites as possible, in addition to the local Multiple Listing Service.

Special promotions may be necessary to draw attention to a residence, said to Phipps. “To differentiate your house from all the others on the market may require incentives, such as including closing costs, giving a decorating allowance, replacing windows in an older house or even throwing in a sailboat. Of course, these have to be specific to the market.”

Another extra that sellers can offer is a one-year warranty to cover such mechanical and electrical features as washers, dryers, refrigerators and plumbing, said Stephens.

She added that sellers should make sure their Realtor has a connection with a relocation service so they don’t miss out on out-of-town buyers.

“Video is the next hot thing,” said Robinson. “Videos have generated phenomenal traffic for some properties. They range from professionally done with music, to videos with a personal touch shot by the agent or owner.”

He added that quality of online photos should be high. “People want to see lots of pictures.”

4. Interior clutter

“Less is more when showing a house. The interior must be decluttered. Take half of everything out of closets,” advised Wittig.

Potential buyers imagine what it would be like living in your house. They don’t want to see all your stuff.

“Opinions are formed in seconds after entering a house. Immediate turnoffs include too much furniture, dirty or stained carpets, (and) food smells such as fish, garlic and spices,” said interior designer Helen Velas, president of Eleni Interiors in Naperville, Ill.

She advises that sofas and chairs should be cleaned, or a storage locker can be rented to move out some of the furniture.

“Ceilings should be white, not matching the color of walls. Buyers probably won’t like your wallpaper, so paint those walls,” Velas said.

“To make your house feel like today, buy new throw pillows with an up-to-date palette of colors. Brighten up rooms by turning on all the lights, add lamps in dark rooms and open drapes and blinds. Leaky or rusty faucets should be fixed or replaced.”

For a home that needs a major makeover, Wittig recommends hiring a company to stage the interior. That may include painting rooms and moving furniture, or renting furniture if the house is empty.

5. Undesirable location

A house for sale in a less than desirable location in this much-less-than-desirable market suffers from a double whammy.

The main option is to lower the price. But sellers also can ramp up marketing by promoting special features of the house, such as proximity to shopping, transportation and recreation.

For special problems, Stephens offers these tips: “If security is a problem in the area, install an alarm system. If the home backs up to an apartment complex, build a fence. If the location is on a busy street, market to buyers without kids.”

Phipps of the National Association of Realtors offers one last bit of advice to those with a home that just won’t sell: “Remember what it was that attracted you when you bought your home. What motivated you back then to buy? Try to evoke that feeling now.”

By John Handley, Chicago Tribune

It’s summer, but the housing market still seems stuck in the deep freeze of winter. Thousands of homes languish on the market with no buyers in sight. Desperate owners wonder: “Why isn’t my house selling? What’s wrong with it? Will it ever sell?” Granted, the entire economy has tanked and unemployment is high. But there are reasons why some houses don’t have a ghost of a chance. Here are five top reasons:

1. Overpriced

Real estate agents nationwide agree that in this buyer’s market the No. 1 deal breaker is price.

“In order to sell today, the price of a home must be compelling, not just competitive,” said Ronald Phipps, the 2010 president-elect of the National Association of Realtors.

“The market now is all about price and value. Sellers should not be offended by very low opening offers. Rather, they should focus on where the negotiating ends,” said Phipps, principal broker of Phipps Realty in Warwick, R.I.

He advised sellers to revisit their price every 30 days.

“In setting a price, some sellers think $299,000, for example, will attract more attention because it is less than $300,000. Ditch that retail mentality. You could miss the 90 percent of buyers who search online and may be clicking on homes in the $300,000 to $400,000 range.”

Phipps noted that prices seem to be stabilizing across the country. But some real estate experts see the possibility of more slippage.

“Home selling today is a price war and a beauty contest. You have to win both to sell,” said Ian Robinson, branch manager of the Coldwell Banker office in Northbrook, Ill. “You must be ahead of the curve price-wise. Prices of homes that sold six to 12 months ago may be too high.”

“It’s important to be the best deal in the neighborhood. You don’t want to be the last on the block to lower a price,” said Judy Stephens, vice president of ERA Stephens Properties in Houston.

2. Bad curb appeal

Potential buyers will keep on driving if poor curb appeal suggests the house may be in bad shape too.

“It’s all about first impressions,” said Gail Wittig, a broker associate at Michael Saunders & Co. in Sarasota, Fla. “People have to fall in love with a house.”

That means manicured lawns are a must, plus trimmed trees and bushes, new mulch and no weeds.

“There should be no chipped paint on the front door or rusted hardware. Some people even forget to sweep the front porch,” Wittig added.

If necessary, the exterior siding and trim should be freshly painted.

“Paint is cheap, and you will get your money back,” Wittig added.

“If you have a front porch, put a rocking chair out there to make it look more inviting,” Stephens said. “Make sure there are no rakes, bikes or toys in the front yard.”

3. Ineffective marketing

With the market oversaturated, the challenge is to stand out from the crowd. Poor marketing can spell doom even for attractive properties.

Phipps said sellers must be aware of how buyers are searching, especially on the Internet. “A compelling online presence is necessary, including photos and floor plans. Avoid using any out-of-season photos.”

In today’s high-tech world, the Internet often provides the first showing of a home on the market. Sellers should make sure their home is on as many Web sites as possible, in addition to the local Multiple Listing Service.

Special promotions may be necessary to draw attention to a residence, said to Phipps. “To differentiate your house from all the others on the market may require incentives, such as including closing costs, giving a decorating allowance, replacing windows in an older house or even throwing in a sailboat. Of course, these have to be specific to the market.”

Another extra that sellers can offer is a one-year warranty to cover such mechanical and electrical features as washers, dryers, refrigerators and plumbing, said Stephens.

She added that sellers should make sure their Realtor has a connection with a relocation service so they don’t miss out on out-of-town buyers.

“Video is the next hot thing,” said Robinson. “Videos have generated phenomenal traffic for some properties. They range from professionally done with music, to videos with a personal touch shot by the agent or owner.”

He added that quality of online photos should be high. “People want to see lots of pictures.”

4. Interior clutter

“Less is more when showing a house. The interior must be decluttered. Take half of everything out of closets,” advised Wittig.

Potential buyers imagine what it would be like living in your house. They don’t want to see all your stuff.

“Opinions are formed in seconds after entering a house. Immediate turnoffs include too much furniture, dirty or stained carpets, (and) food smells such as fish, garlic and spices,” said interior designer Helen Velas, president of Eleni Interiors in Naperville, Ill.

She advises that sofas and chairs should be cleaned, or a storage locker can be rented to move out some of the furniture.

“Ceilings should be white, not matching the color of walls. Buyers probably won’t like your wallpaper, so paint those walls,” Velas said.

“To make your house feel like today, buy new throw pillows with an up-to-date palette of colors. Brighten up rooms by turning on all the lights, add lamps in dark rooms and open drapes and blinds. Leaky or rusty faucets should be fixed or replaced.”

For a home that needs a major makeover, Wittig recommends hiring a company to stage the interior. That may include painting rooms and moving furniture, or renting furniture if the house is empty.

5. Undesirable location

A house for sale in a less than desirable location in this much-less-than-desirable market suffers from a double whammy.

The main option is to lower the price. But sellers also can ramp up marketing by promoting special features of the house, such as proximity to shopping, transportation and recreation.

For special problems, Stephens offers these tips: “If security is a problem in the area, install an alarm system. If the home backs up to an apartment complex, build a fence. If the location is on a busy street, market to buyers without kids.”

Phipps of the National Association of Realtors offers one last bit of advice to those with a home that just won’t sell: “Remember what it was that attracted you when you bought your home. What motivated you back then to buy? Try to evoke that feeling now.”

By John Handley, Chicago Tribune

Pacor Mortgage brings you RatePulse, the video series that gives you the inside scoop on this week’s movers and shakers in the mortgage industry.

Pacor Mortgage brings you RatePulse, the video series that gives you the inside scoop on this week’s movers and shakers in the mortgage industry.

Pacor Mortgage brings you RatePulse, the video series that gives you the inside scoop on this week’s movers and shakers in the mortgage industry.

Last week brought a gale of game-changing news, contradicting recovery, and a whiff of panic. This holiday-short week was news-thin, and mid-July marks the beginning of an often sleepy season for markets and the economy.

Panic is sometimes an excellent investment strategy, but it is a difficult frame of mind to maintain. Thus stocks soared 450 points in three days this week, shorts covering, but bond and mortgage yields held extraordinary lows, underlying worry entrenched. The 10-year T-note rose to 3.05% from 2.95% (mostly pricing down in advance of next week’s $69 billion Treasury bond sale), but mortgages stayed put in the mid-fours.

The economic data that did arrive confirmed a slipping recovery, but not a double-dip. The ISM service-sector report for June followed last week’s pattern: softer than prior month, and well below forecast (May 55.4, forecast 55.0, actual 53.8). New claims for unemployment insurance came down 21,000 last week to 454,000, but have been stuck in that range all year long.

Mortgage refi applications have begun to rise, but purchase ones fell again, by 2% last week, now 42% below the end of April. There isn’t any way to know for sure, but that decline seems far greater than could be explained by the end of the tax credits and pull-forward of demand. More likely: the tax credits masked an ongoing housing slide.

The most troublesome report was consumer credit: May outstandings dumped $9.1 billion, and the $1 billion gain initially reported for March-April was revised to a $14.9 contraction. A debate of sorts continues: bankers and you-deserve-it analysts insist that credit is shrinking because few will apply, and those who do are poor credits.

As this episode grinds on, there is no question that many people who would have borrowed two years ago, or last year, to buy something or to invest are now too concerned to do anything. And there are many others whose creditworthiness has weakened since the show stopped in 2007. However, try to tell anyone out here on a real-world sidewalk that credit is not tighter than any time in their lives, and tightening, and they’ll laugh at you.

Consider the newest Fannie/Freddie loan data. These GSEs and the FHA are under terrible pressure to stop lending, exerted by factions that have forever hated them (no-government types, most in the financial markets, all bankers, this’ll-teach-yas…). The foolishness of 2002-2006 should never be repeated. However, in 2007 55% of GSE mortgages went to applicants with 720+ credit scores; in 2009, 85%. In 2007, 76% of applicants put down 20% or more; in 2009, 89%.

Those changes are not market movements; those are throughputs of requirements. It is one thing to be cautious. But to re-calibrate standards to tighter than ever before (‘90s, ‘80s, ‘70s…), that is credit starvation, and makes housing recovery impossible.

Another issue: we are in the process of reducing the rate of home-ownership from roughly 69% of households back to something sensible, under 65%. The arithmetic alone demands a new investor-buyer for each home conversion from owner to non-owner (or wait for 15 years’ growth in new households). In 2009, GSE loans to would-be landlords were only two percent of total production. And people wonder why Mr. Market cannot absorb inventory, troubled or not, no matter how far prices fall.

We do not have deflation in general prices, but we are years into asset deflation and its very peculiar effects. Interest rates go to record lows, but purchasing power and theoretical affordability are cancelled by lender panic. Furious attempts to de-lever increase leverage, as assets fall in value faster than borrowers can pay down loans.

It may be good national policy, supported by consensus, to reduce resources allocated to housing. We may also decide to live with less credit than any time since WWII. However, to attempt such strategic change in the belly of this recession is a failure of observation, public policy, regulation, and imagination.

by: Lou Barnes

Pacor Mortgage brings you RatePulse, the video series that gives you the inside scoop on this week’s movers and shakers in the mortgage industry.

Pacor Mortgage brings you RatePulse, the video series that gives you the inside scoop on this week’s movers and shakers in the mortgage industry.

As you may have heard mortgage rates are at all time lows, right? So the question now becomes, why are you not refinancing? With interest rates as low as they are a great opportunity is at hand for many borrowers. The funny thing is though, on June 24th, the day that the weekly interest rate survey pointed out these lows. Rates took a big jump to their highest levels in a week.

Keep in mind that interest rates on mortgages behave far more like stocks than they do like CD rates which banks can set and leave in place for months. Mortgage backed securities trade in an open market and can be impacted by political and economic news in addition to supply and demand. So rates can move like Microsoft’s stock. Could be $28 this morning and $29.50 in the afternoon.

The best advice if you are a consumer is to work with a professional lender who you know, like and trust. Figure out the best solution for you and then come up with a target rate. Remember, especially if you are considering a reduction in the term of your mortgage, the big savings comes in the tens of thousands of dollars in savings by cutting years off the loan. There are only pennies to be saved trying to guess if you can get 4.75% tomorrow instead of 4.875% today.