Posts Tagged ‘Real Estate’

This Month in Real Estate looks at the decrease in foreclosure filings, and how an increase in short sales might be playing a role in the number of foreclosures filed.

In this video flipping homes expert Steve Cook begins a walk through of one of his latest “full cosmetic rehab” projects, detailing his investment strategy, estimated rehab costs and expected profit.

There are several reasons why people sell their house. One is because they have plans to move to another location. Another is they have noticed for foreclosure and they can no longer afford to make payments. Whatever the reason for selling the real estate, it is important that they manage to acquire the highest possible value of the property.

In order to improve the value of your house, you have to allocate enough time to check it in and out. A few repairs will add more to the value of the house. You may not be able to mimic those by Gilbert Homes but you are able to generate a good sum of cash when you finally close the deal.

Here are some ways to improve the value of your house:

1. If you were the buyer, what would you think? What would you want your potential house to look like? What would you expect from a house that is within a particular price range? Once you are able to answer these questions, look at your house. How much would a buyer like you pay for it? Why do you think the value is just as much?

2. The next best thing to do is to consult a home inspector. The inspector will check what needs repair in your house. He will check all parts like the wall, ceiling, roof, air conditioning system, and other features that the buyer will most likely expect to be in top form. Follow make the necessary changes as suggested by the inspector. Having a home inspection ahead of time will allow you to choose the contractors and materials that are within your budget.

3. Do minor repairs and save from it. Things like repainting and changing the doorknobs are simple repairs that you can handle. You can also improve how your yard looks like. Clean it from trash. Remove anything that is unpleasant to the eyes.

4. Remove clutter inside your house as well. If you are going to move, it is best that you pack all personal items. You can leave some furniture behind to make it more appealing to potential buyers. However, do not overstuff the house. Most buyers want to have a fresh start. They want to redecorate and add their personal touch.

5. Make sure that you acquire permits for the additional structures in your house. Keep in mind that the appraiser will not add value to your property if you cannot present any permit. If you were going to add structure, it would be better if it were functional and pleasant looking.

Buyers will not want to pay for something they cannot use. They will also have doubts of purchasing a house with awkward looking structures.

If you are wondering how Gilbert Homes does it, you do not need to look too far. You can start by asking yourself what you want from a house.

However, you have to be willing to spend some time, money, and effort to ensure a good market value for your home.

Whether you don’t see yourself settling down for a good number of years to come or if you want to establish a solid family life the soonest time possible, one of the most important decisions that you will ever make is choosing which home to buy.   It does have a lot to do, not just with your future plans, but with your finances as well. You wouldn’t want to be stuck in house with a huge mortgage that will take up a chunk of your paycheck, and you don’t want to compromise on owning something too small, either. So how will you create that delicate balance between the two?  That is exactly what we will try to discover here.

Taking the First Step when Buying a Home

Before enumerating the top mistakes that you should steer clear of when buying a home, let us first have a quick preview of the factors that you do need to take into consideration. Perhaps the most important question that you need to ask yourself is: when is the best time for me to personally buy a home? Naturally, if you are already settling down with a family, buying a home is a must.

However, if you are still enjoying the single life, decide whether buying your own home instead of renting is a practical solution all the way round. This is especially true now that the entire world is experiencing an economic crunch. You wouldn’t know when the real estate industry will drop again, or if the company employing you is even on a stable condition. Just to be on the safe side, put off the decision for buying a home at a time when you are more or less stable financially.

Once you have decided whether now is the right time for you to purchase a home or not, you can move on to considering these other factors when purchasing a home:

The style/size of home that you want.
The neighborhood that you wish to live in.
The location of the home.
The quality of the home’s interior/exterior.
Your budget.

The last item is particularly important because if you will not set a budget for when you are purchasing a home, you might end up struggling through the payment of your mortgages – and eventually end up losing the house in the process.

Steer Clear of these Top 10 Home Buying Mistakes

Now that you already have an idea about the factors that you need to consider when buying a home, let us take a look at the top ten home buying mistakes to avoid, so as not to regret your decision in the future:

Not getting the professional help that you might need during the home buying process. If you are a home buyer and you are dealing with a real estate agent, remember that he or she is working for the sake of the seller and not you as a buyer. Sure, you need to get professional help if this is something that during the home buying process, but be careful with who you are dealing with – and make sure that the person assisting you is working towards your best interest.

Not having a price ceiling for the type of home that you can afford. One of the most common mistakes that first-time homebuyers make is not setting a price ceiling for the type of home that they can afford. Don’t over-extend your finances, no matter how excited you are in the prospect of finally owning a house. Make sure that the monthly mortgage payment is something that will still allow you to live comfortably, and you should be all set.

Not putting down enough down payment. Even if you receive an offer to buy a home with zero downpayment, you have to think twice before grabbing the opportunity. Experts say that a 5 to 20% down on your home is a good enough deal.
Not shopping around enough. Unlike when shopping for goods at a department store, purchasing a home is a major financial decision. Take all the time that you need and make sure to look at all your buying options before making a decision.
Missing out on the home inspection process. Don’t think that there is such a thing as ‘falling love at first sight’ with a house. Sure, you may think that the white picket fences and the exterior of the house is straight out of a fairy tale, but keep your eyes wide open by going through the home inspection process.

Forgetting to pay a closer look at the location of the home. “Location, location, location” should be the motto of homebuyers. What’s the sense of purchasing a home which is miles away from the nearest hospital, grocery store or your workplace? At the end of the day, convenience with your home’s location is something that you will also be paying for – so pay close attention to this when buying a house.
Skipping on the pre-qualification and pre-approval process. Again, it’s important not to get over-excited at the prospect of buying a home, especially if it is your first. Don’t skip on the pre-qualification and the pre-approval process, which is something that a real estate agent can assits you with.
Failing to learn about the ins and outs of the mortgage process. Although the best way to purchase a home is with cash, most Americans cannot afford to do so. When taking out a home loan, make sure to understand about the basic process which will take your credit score into consideration, the avenues where you can actually get the loans, as well as the types of loans which are available for you.
Failing to consider all the financial aspects of buying a home. When buying a home, there are additional and hidden costs involved – from maintenance to tax and insurance, or decorating and your dues as a homeowner. Always think about these things before making that final decision on which home to buy.
Failing to consider the reselling value of the home. Finally, remember that the first home that you will buy will most probably not be your last. Due to job placements or other personal reasons, you might need to move out of the house that you bought in the future. As such, it pays to consider the reselling value of your home as well before signing your name on the dotted line.

This list is by no means exhaustive. There are many other factors that you need to take into consideration when buying a home, and a lot of newbie mistakes to avoid. All in all, the moral of the story is that home buying is a decision that you should not rush – and it helps if you will learn about the ins and outs of the home buying process so that you will not come to regret your home buying decision in the future.

Real estate tips from Keith Carberry of RE/MAX. From the real estate FAQ or frequently asked questions of “It’s Time to Move Up”. For more information about the show, please go to www.itstimetomoveup.tv. For more information about Keith Carberry, please visit his website at www.carberrysoldmyhouse.com.

Staging Homes – Home stager, Julie Langford, explains in this quick interview with Dan Eason of EnergizeSeller the #1 rule for sustainable organization. Julie is a home stager and designer from San Antonio and New Braunfels, TX. EnergizedSeller.com is a website for real estate and home stager professionals. Get more home selling tips and home staging tips on energizedseller.com.

Watch Master Bedrooms Home Staging Tips, by EnergizedSeller. EnergizedSeller is the most read Real Estate Resource website featuring informative thoughts on Home Selling Tips or House Selling Tips, and Home Staging Tips, to Increase Home Value.

Easy to figure this one out.

Congress Extends Home-Buying Tax Credit

In a bold, unforeseen move….oh who am I trying to kid? In a move that everyone saw coming,Visit Here Now http://mortgage-loan-broker.blogspot.com

 Congress voted (and President Obama approved) to extend the popular tax credit for homebuyers for an extra six months. [Given the growing sense of discontent with heretofore government efforts to restore balance to the market, perhaps they didn't have any other choice.] The program was originally slated to expire in November, but thanks to popular demand (and prodding from lobbyists in the real estate industry), it will now run until April. “To qualify for the credit, buyers have to have a binding contract on a property in place by April 30, and need to close on the sale by June 30.”

The program has also been modified slightly from its original form, in which only first-time buyers with a maximum combined income of $150,000, were eligible for the $8,000 tax credit. In its latest iteration, the tax credit will be available to an even wider demographic. First-time homebuyers will still receive a tax credit worth $8,000, but the income restrcitions have been raised to $250,000, which means that all but the wealthiest 2% of Americans are now eligible. In addition, those wishing to make a new home purchase (but are not first-time buyers) are eligible to receive $6,500 for so-called “Trading Up” purposes.

For many homebuyers rushing to close on a home purchase, the extension was no less than a windfall. It appears that many had orignally underestimated the amount of time it can take to close (sometimes several months); now that they have until May 1 to close, there is less of a need to rush. In addition, the tax credit credit can still be claimed in advane, in the form of a loan from the government. In this way, homebuyers looking to make a purchase now, won’t have to wait until filing their taxes to receive a reinbursement. Given that April 15 is right around the corner, however, this is probably less of an issue for those that take advantage of the program in the coming months. As an aside, it’s important to check with an accountant/tax-preparer to confirm your eligibility for receiving the credit, as the IRS has already identifief 20,000 caes of fraudulent/accidental claims by those who were ineligible.

In the short-term, there’s no question tha this tax credit will continue to provide support for the housing market. Many analysts have attributed the apparent stabilization of the housing market solely to this program. Given its expansion to include all but the wealthiest home-buyers and the removal of the requirement that it can only be claimed in association with a first-time home purchase, it will provide have an even greater impact in the months ahead. In fact, “The industry group is forecasting 5.69 million existing home sales in 2010, up from an anticipated 5.01 million this year. About 549,000 new-home sales are projected for next year, up from an estimated 397,000 this year,” a rise of nearly 15% from 2009 levels.

As for the long-term, that’s another story, altogether. ““Housing activity is likely to fall back once the tax credit finally expires, as some sales will have been brought forward from future months,” explains one analyst. Ideally, the economy will pick up during the interim, and cushion the fall after the program ends. In this way, the tax credit can be seen as nothing more than a giant bridge loan for the housing market.Visit Here Now http://mortgage-loan-broker.blogspot.com

Among the many causes of the 2007-2008 real estate crash was the injurious use of fraudulent home appraisals in determining home values for mortgages.  The appraisal amount is an indispensable factor for a mortgage lender in determining how much to loan.  If a property has been appraised for the wrong amount it can cause quite a problem.

Although home appraisers are supposed to function independently of lenders, during the bubble they were frequently hired directly by lenders.  This created a situation where appraisers that created appraisals with values that were favorable to the lender, were given more work by mortgagers.  There was an increasing pressure on appraisers to take care of their employers by producing the numbers they wanted to see.  Unfortunately, this was detrimental to the buyers.  As the market crashed, these properties lost value, not just actual value, but also the over-inflated value given by the appraiser.  Mortgage holders had to foreclose on and try to sell many properties that could never be sold for anything near the original loan amount.

To avoid this, there are steps that a borrower can take to get an honest and legitimate appraisal of their home. Although the lenders usually have their own appraisers that they deal with frequently, the cost of the appraisal itself is usually charged to the borrower. As the borrower is paying for the appraisal anyway, there is nothing to prevent the borrower from hiring their own appraiser, as opposed to the one recommended by the lender. In fact, this is a very good move to make and if your lender refuses to accept this – assuming your preferred appraiser is legitimate and in good standing – then it should be taken as a red flag that the lender may have an ulterior motive.

Finding and hiring your own appraiser adds an additional element to the home buying process and is extra work, which is precisely why many borrowers are willing to accept the lender’s recommendations. However, if the entire mortgage is based upon an inaccurate appraisal, this can result in massive losses for the borrower in the future. For this reason it is worth the effort to take the time to find and hire your own appraiser.

Appraisers are easy to find in the yellow pages in any location.  However, making sure they are legitimate and in good standing with the state takes a little more work.  You can check with the Better Business Bureau and with the state attorney general’s office to make sure they are licensed.  These two are also a good resource to find out about any criminal records and lawsuits.  And of course, the company will be happy to provide references from all their most satisfied and happy customers.

It means more work for you, but hiring a legitimate firm to do an independent appraisal can save a borrower thousands of dollars and keep credit trouble away.  Doing the extra work is well worth the effort.

Title Insurance Policy protects Home Buyers and Home Sellers against claims on their Title on their real estate. What home buyers and home sellers needs to know about Title Insurance Policy?!!

An economics presentation at Humboldt State University. Special guest lecturer Dr. Christopher Thornberg of Beacon Economics discusses the current housing bubble and its effects on California.

How do HomeGain, Realtor.com, Service Magic and other companies like this make money? These companies are called lead generation companies. They spend vast amounts of money advertising on TV, the Internet, radio, and in print so that you’ll go to their website to find information about real estate. When you click on a property and request information the company then either sells the lead at a fee ranging from $20-$50 for an unqualified lead or up to a 35% referral fee for leads that are more valuable.
What does the company do for the fee charged? The answer might be pretty surprising. They don’t do anything, but forward the lead to a service provider. Yep, that’s right. You can search the MLS on any number of free websites so the website they provide is little more than a mechanism to get your information. Some people think agents, contractors, or other service providers are overpaid for what they do. Take a look at these companies and ask yourself if forwarding an email is worth $1500 (That’s the commission split they would receive on the sale of a $150,000 home.).
Who pays the fees that these companies charge? For the most part, the Realtor, mortgage broker or other service provider pays for these leads. The laws of business provide that you can’t get something for nothing. This is very true. So by adding no value to the transaction and taking up to 35% of the payment for service, the middle-man is taking value from both the consumer and the service provider.
Why is this bad for consumers? In real estate like many other service industries, the best Realtors obtain their business through referrals. The weaker, newer, less experienced agents typically buy leads from sources such as these. The next time you visit a site like these lead generators, think twice about giving them your information and go directly to the source. You’ll cut out the middle-man and get a better agent for your hard earned dollar.

Some DFW home sellers are emotional for a different reason; they are upset because they can’t sell their home.   Here are some of the top selling mistakes.

Asking is Priced Too High

The single worst home selling mistake that a seller can make is asking too much for the home. If the home is priced too high, buyers won’t look at it.  You won’t “get lucky” and sell your home for an over inflated price.   “I can list the price of my home high now.  I can always lower it later”.  This strategy will surely backfire as well.  Your house can only be a new listing once.  There is an energy, an excitement and there is interest in a new listing.  This cannot be re-created by lowering the price later.  Your competitive edge will be lost.  The bottom line is sellers who “test the market” will “pay the price”.

Home is in Bad Condition

Any professional DFW Realtor will tell you that getting your DFW house ready for market is more than tidying up the place.  The house must not only be spotless and fresh, the home must be in good repair and have good curb appeal. Cleaning and repairing the house can boost chances of quickly selling and at a higher price. If items are broken or buyers see deferred maintenance, they wonder what else is wrong. It will cost you more, via lower sales price, to fix and prepare the house. If your house is vacant you may want to consider hiring a professional home stager to make the house look and feel like a home.

Home is Marketed Wrong

When there is a bad photograph in the DFW MLS or only one photo a critical marketing mistake has been made.  The photos are the most important marketing tool.  If a potential buyer is scanning the internet for DFW Real Estate it is initially the photo that will grab their attention and get them to via your house information. Talking about the internet; almost everyone starting their DFW Home search start their search on the internet.  Your house must have a good internet presence to have any chance of selling.  Seek real estate firms that have high rankings on search engines so that more people will see your house for sale.

Hiring an Inexperienced Agent

Hiring a good mediocre listing agent certainly will not help sell your home but it will cost about the same as hiring an excellent agent.  Hire an agent that has experience in your area.  They know more about and have more contacts in your area. If you want full-service, then hire a full service agent. If you are fairly confident your home will sell without a full-service agent, then talk to a discount or flat fee broker.  . Carefully read your listing agreement and make sure the agent who brings a buyer is compensated fairly because one surefire way to make sure an agent won’t show your home is to offer a low commission percentage.