Archive for real estate information
Foreclosure Figures Show Improvement
The feeling is that foreclosures are subsiding. The incredible increase in foreclosure activity that hit the United States hard over the past couple of years was a huge catalyst for falling home prices, as well as a staggering hit to the real estate market as a whole. The decrease in foreclosures for the end of 2009 that has been reported is good news for all. As foreclosures disappear real estate values will be less affected.
The Mortgage Bankers Association reported on Friday that there was a decrease in foreclosure applications for the last quarter of 2009. This was particularly good news considering the fourth quarter typically sees a rise in foreclosures due to heating costs, according to the MBA.
While foreclosures will still be coming the decrease appears to make the problem improving or, at the very least, not getting worse. The nation’s employment numbers need to improve before we are out of the woods but slowly and steadily we are climbing out of the recession and real estate is taking baby steps toward a solid recovery.
Click here to read the full report from the MBA.
Selling Your Home? Choose the Right Realtor
Take time to choose the right broker when selling your home
When preparing to sell your home it is important to find a real estate professional that will best suit your needs. A warm handshake and a friendly smile is all well and good but if you want to sell your home pick a broker that is experienced and knowledgeable, someone that will do the best job for you. When selecting your real estate agent here are a few things to keep in mind:
Data. Get a prospective Realtor to bring in a copy of what they have listed and closed. They can present you with an MLS report that displays their inventory.
References. Get references from a potential Realtor and call them. Find out what other people’s experience with a particular Realtor has been.
Price. Get an evaluation of your property. A solid real estate professional will be able to detail what has been selling and for what price. He will be able to evaluate your home and your location, giving you a value for your home that will help sell it not deter people from looking at it.
Plan. What does your Realtor plan to do for you in terms of marketing, sales, listing, etc. Make sure he has a plan for your house and find out what he is willing to do to get it sold for you.
Real estate is often a person’s most valuable asset. Do your legwork and choose the best broker for your home. He or she should be a salesperson. If they can sell themselves to you perhaps they are halfway to selling your home for you as well.
Remodeling? Exterior Improvements Give More Bang for the Buck
Exterior improvements give more of a return when remodeling
There is an annual report that examines the cost versus value for home remodeling. The report is helpful for those who are considering making improvements to their homes, especially if their home is one that they consider selling in the near future. Historically, bedrooms and bathrooms are where people consider spending their money but the return on the remodel investment is not necessarily there.
According to the 2009 Remodeling Cost vs. Value Report the best return for your money are exterior improvements that often are lower cost projects to begin with. Adding decks, replacing siding, new doors and windows are among projects that recoup the most money when re-selling a home. The return on these projects is typically 80% or more.
The annual report shows how important first impressions are. If you are considering selling your home make sure that the exterior is as eye catching as it can be.
Click here to learn more about remodeling costs versus value at The National Association of Realtors’ website.
Waiting For the Bottom
Waiting for the bottom in real estate is similar to grabbing a Yo-Yo at the bottom, you are usually a little early or a little late
There are many people out there waiting for the bottom to hit in many facets of the economy, including real estate. Perhaps there will be a big announcement one morning across newspaper headlines and across the internet “THE BOTTOM IS HERE: NOW IS THE EXACT MOMENT TO BUY”. Of course by the time the announcement comes the bottom will have hit and the exact time to buy real estate will have come and gone.
A great analogy to the bottom of the real estate market is a yoyo. Take a yoyo in your hand and use it. Can a person grab the yoyo at the exact moment it hits bottom every time? Chances are a person will grab it just before it hits bottom or just after, rarely at the exact bottom. Real estate is the same game, if it is indeed a game. If people knew, absolutely knew, the exact time to buy stocks, real estate, or any other investment then no one would ever have a financial worry.
For people who believe in investing in real estate now is a great time to buy. Interest rates won’t be low forever, real estate has either already hit the bottom, is about to or is already on its way up, we’ll know for certain sometime in the future. If you want to buy at the bottom, buy now or wait until it’s too late, when you can look back and say, “If only I had bought then.”
Real Estate, Where are We?
It is a buyer's market
When it comes to real estate the general sentiment appears to be that of putting 2009 in the past and looking forward to a brighter 2010. Looking at where we are and where we are headed as far as real estate goes will take us from the present into the future. Currently home values are affordable, because prices are low and interest rates are low. Both of these low levels add up to the fact that it is a great time to be a buyer when it comes to real estate.
Interest rates have been hovering at 5% or lower for the better part of the past year, a trend that cannot be expected to continue. As the market stabilizes more and the economy gets better, interest rates will rise. While home prices still may drop in many areas of the country, they will not drop much more. Areas that are less affected by foreclosures, short sales and REO properties are likely to level out faster than other areas due to the lack of distressed sales in their inventories. A rise in interest rates may bring real estate prices down to sell but the days of 20% and 30% decreases appear to be unlikely.
In a nutshell now is a great time to buy if you have been waiting for the right time to plunge into the market. Take advantage of low interest rates while they are here. It is a buyer’s market now, it won’t be forever.
For an interesting analysis of the real estate conditions and a forecast of 2010, by CNN Money, click here.
Examine the Closets in Your Home
An organized closet can make the difference when trying to sell a home
When considering selling real estate the question surfaces, what can I do to improve my home and make it more appealing to a prospective buyer? Looking at your closets might be the answer. Closets may be the small improvement your home needs when getting ready to sell.
Newer homes tend to have bigger closets and they aren’t just dark spaces with doors any more. Today’s closets, thanks to companies like California Closets and other offshoots, are filled with light and organized spaces like drawers, shelves, shoe racks and hanging bars that hang at different heights to accommodate different articles of clothing. Some closets come across as small rooms. Regardless of whether you have a new home or an older home, if your closets aren’t organized they can be.
Closets can be do-it-yourself projects or created by a contractor or a closet company. Remodeling closets can be an inexpensive re-model that can add value to the sale of your home without breaking the bank.
Home Inspection Before You Sell
Consider doing a home inspection before selling your home
If you are considering selling your home in the current real estate market it would be prudent to have a home inspection completed before putting your home on the market. It is rare that a buyer will not have a home inspection done before closing and being aware of any problems and taking care of them prior to selling can alleviate the pain that surprise issues can bring.
It is a competitive real estate market out there. A seller’s best chance of snagging a buyer comes with having his real estate in top notch condition. More that looking good a home needs to function well and it is important to examine the bones. A home inspection will inform the buyer of faulty plumbing, wiring, heating and cooling issues, the need for roof replacement, painting, etc.
If problems with a property are faced and dealt with before selling, there should be no surprises when going through the contractual steps before closing.
For more information on home inspection and locating a home inspector visit the website for the American Society of Home Inspectors by clicking here.
To Rent or To Buy, That is the Question
If monthly payments are affordable buying a home can make more sense than renting
A question that surfaces on most people’s mind at some point is, whether to rent or to buy. The first thing that pops to mind is affordability but there are other factors, such as job stability, relocation possibilities and lifestyle. If you intend on being in an area for at least two more years, your income is steady and purchasing a home fits your lifestyle then it is time to break out a pen, paper and a calculator and see if buying makes more sense financially than renting.
At first glance buying a home makes more sense than renting because of the ability to gain equity in a home. While the past few years have shown this factor to be a bit shaky, the reality is that if you keep a property long enough, or get in at the right time, buying real estate can be a worthy investment.
There is no sense making a two column list when it comes out to equating the cost of renting and buying. Renting is a fixed equation, the monthly number typically doesn’t change. To compute your costs for buying a home you look at the following:
- Purchase price
- Down payment amount
- Loan Amount
- Loan Term
- Interest rate
- Property taxes
- HOA fees
- Monthly mortgage payment
- Home owner’s insurance
- mortgage insurance
Your monthly costs will include your mortgage payment, property taxes, insurance, and any HOA dues that may exist. If these numbers add up to an amount you can afford it could make sense for you to purchase a home instead of rent. The important thing to remember is that once you buy a home you are not going to have a landlord to rely on to make repairs so factor in putting aside some extra money for a home repair and maintenance account.
Buying a home is an important decision and one which can add to future security and financial stability if done with great thought and evaluation.
Extending the Good News for Home Buyers
Extending the Good News for Home Buyers
By Lawrence Yun, Chief Economist, NAR Research
Let’s first turn to the terrific news regarding the housing stimulus. Earlier this month, the U.S. Congress overwhelmingly passed and the President signed into law new measures to maintain the momentum for a housing market recovery. The home buyer tax credit, originally scheduled to expire at the end of November will now be available through the middle of next year and more potential buyers will be able to take advantage of it. The income limit was also increased and many move-up buyers – not just first-timer purchasers – also will qualify. Furthermore, loan limits will not shrink as was planned for next year; in high-cost areas, the loan limit will remain at near $730,000 in 2010, thereby permitting more consumers to tap into the historically low mortgage rates.
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