STRATEGIES TO SELL A HOUSE...REMODELING...OTHER NOTES

By PAMELA REEVES

You may have read about the hot real estate market and how houses are moving almost as quickly as they come onto the market. But for many sellers, this appealing scenario isn't happening. Some houses still sit on the market for months without much interest from potential buyers. Sometimes it's because the house is overpriced or in bad shape or too expensive for the neighborhood. Or it may be simply that there is little demand for housing in a particular neighborhood or city.

If you live in an area where housing is in demand, you have a good chance of selling at a desirable price in a short time. But before putting the house on the market, talk with a real estate agent about what you can do to make the house look better.

It's an unfortunate truth that few buyers are interested in fixing up a house that needs work. Most go with their first impressions and can't get past a scraggly lawn, peeling paint, dingy kitchen, dark den, dirty carpet and cluttered rooms.

A good real estate agent is someone who will give you an honest opinion on what needs to be done before the "For Sale" sign goes up. An outsider can easily see flaws that you no longer notice. Don't take offense, take action.

It's often worthwhile to spend a few thousand dollars to fix up the walls and the floor. Paint, rugs and carpets all make a major impact for the money spent. You might get a second opinion before deciding on such major projects as a kitchen or bathroom update.

Once you get ready to put the house into play, ask the agent about her marketing plans. Sometimes agents are able to create a buzz about a house that's new on the market and that increases chances of a quick sale.

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Last year 52 percent of all mortgage originations were refinances, according to Freddie Mac, a big secondary mortgage company that tracks the market.

"'Refis' are about half the market right now," said Robert Van Order, Freddie Mac's chief economist. "We expect they'll account for only about a third of originations later in the year."

Van Order predicts housing prices will rise between 4 percent and 4.5 percent this year even though sales are not expected to reach the record levels of 1998.

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The good economy has meant fewer people have gotten behind in their mortgage payments. Among those who got a new mortgage in 1998, only 5 out of each 10,000 were late at least three months or in foreclosure, according to the Mortgage Information Corp. (MIC).

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"Homeowners increased their spending on remodeling to a record level in the first quarter of 1999," said Nicolas Retsinas, director of the Joint Center for Housing Studies.

"With stable financing costs and strong employment growth, homeowners are more comfortable undertaking home improvement projects," said the center's Kermit Baker.

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Mortgage rates were up slightly this week (April 22), according to a survey by Freddie Mac. The national average for a 30-year mortgage rose to 6.88 percent from 6.87 percent; the 15 year increased from 6.47 percent to 6.51 percent and a one-year adjustable was unchanged at 5.56 percent.