Characteristics of a good real estate salesperson

Posted on October 22, 2011 by admin

Dealing with real estate is a stressful business and hiring the right real estate professional can make a huge difference. Typically, professional realtors possess a huge experience of over 15 years and really know how to build a professional relationship with their clients. This is evident on their excellent communication skills and on the confidence they show during the time they are working for them. In particular:

Professional realtors are focused

Good real estate salesmen are focused on their job, and take seriously the job they are doing for you. For instance, if your real estate agent is too friendly or doesn’t have a proper appearance or doesn’t have a proper office to carry out the business, it probably means he/she is not professional and lacks experience. Someone who doesn’t take care of personal appearance won’t take care of your business as well. This means you cannot and you should not trust this person in your endeavors to find a house.

Professional realtors are always available

A good realtor loves to work with people. This means that, even on a bad day, he is available for you to listen to your concerns and give you advice. Professional realtors are always available for their clients and always put their clients’ interest above theirs. If you arrange a meeting with your realtor and you feel rushed, it probably means he cares more about the commission than your case.

Professional realtors are knowledgeable

Good real estate salesmen have a broad knowledge of the real estate market. They are familiar with the state and local real estate laws and they are specialized in particular areas so that they can direct their clients in the best way.

Professional realtors go the extra mile

You may find a lot of professional realtors in the market with similar characteristics, who do their job great and bring results. However, those realtors who take care of extra details are those who, eventually, make the great difference or you, the client. Dealing with a realtor who is keeping you posted for every little development in your case; and is always polite and available for you is a win-win situation.

Overall, if you have a realtor who is returning your phone calls promptly, is an effective communicator, a powerful negotiator, an honest and polite individual and grateful for doing business with you, you are really blessed to have a good professional who will definitely take care of your case and will bring results.

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5 Reasons to Invest in a Down Real Estate Market

Posted on October 16, 2011 by admin

We’ve been talking about investing in the down real estate market for a while now, but there are so many people out there who are afraid to plunk down the kind of money it takes to get going in a down real estate market. Here are five things you should keep in mind when investing in a down real estate market:

1)      First, do not ever pay full asking price. The majority of people will be asking for prices at or near the amount of their mortgage, as if they held all the cards. They don’t, especially now that we are all facing a down real estate market. Seriously appraise the property and decide if you want it. If you really do, and it seems like it has the potential to be a return on your investment, then you should make an offer. Some places can be had for as low as a 20 per cent discount on the asking price; that is the beauty of purchasing in a down real estate market. If they balk at your price, you can walk away knowing that they will eventually come down to earth and realize that in a down real estate market, there are very few buyers.

2)      Second, think location, location, location. As the real estate market boomed the last couple of years, the locations for some housing developments started to become really whacky; out in the middle of nowhere, down one lane roads, and with the barest of infrastructures, housing tracts sprung up like mushrooms after a rain storm. You need to think strategically; the desirable houses will be more centrally located when people finally realize that the credit crunch and real estate market is making a come back.

3)      Real estate in a down market is a long term investment. You will probably not be able to unload your investment any time soon, but you should keep in mind that eventually, people will want to purchase new homes again, and when the credit markets do open back up, you will be sitting pretty. Be patient and you will make a tidy bundle when you finally do sell.

4)      You aren’t going to be able to flip a house in a down real estate market, so why bother. Don’t put more into a house than to make it habitable; some people may be lucky to flip in some areas, but flipping is quickly becoming a thing of the past. Maximize your dollars and invest in multiple properties while rehabilitating them only if necessary.

5)      Become a land lord. Land lords are holding all the cards right now. Just because someone loses their house doesn’t mean they are going to become homeless. In fact, in many rental markets, there is a shortage of landlords who can rent to all the people needing houses. Being a land lord can be seen as an interest return on your investment since a 200,000 dollar house rented for 1,000 dollars a month returns 12,000 dollars, or 6% on the investment per year!

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Financing Your Real Estate Investment Is Still Possible

Posted on October 14, 2011 by admin

The last five to six years have been incredible for the real estate lending market; incredibly good and incredibly bad. Skip back to 2005, the height of the residential and commercial real estate market. Home sales (both new and existing) were off the scale, and the building of commercial property was vast. Large, national home builders were constructing millions of new single family homes across the country. Tall condominium towers were popping up in major cities all over the US. Thousands of apartment units were being constructed, and new retail shopping centers were being built on every city block. All was great! People were happy. Consumer confidence was high, unemployment was low, and speculative real estate investors were making money “hand-over-foot.” Buying, borrowing, and selling real estate was a “piece of cake” at that time. Then one day, the wheels came off the wagon. Practically over night the real estate market went from terrific to terrible! Those who invested and borrowed weren’t able to sell their holdings and were devastated; the banks had stopped lending and would not extend further credit to investors.

So what was the impetus of this rapid change in the lending market? Well we’ll need to start back at the housing boom of 2004-2007. National home builders and large condominium developers flooded the residential market with millions of new units. Many of these new units were sold to speculation buyers who received bank financing to purchase these homes. Several of the speculation buyers purchased multiple units hoping to score large profits by selling to real home buyers (better known as “flipping”). However, builders poorly gauged the real demand for housing by true home buyers and allowed investor or speculative buyers to dictate, thereby inflating what the demand truly was. In a matter of a few months, banks and builders realized that the penned-up demand for housing wasn’t anywhere close to the level of the building that occurred within the span of a few years; thus the very basic law of supply and demand took precedence and banks realized that the new supply of housing had incredibly out-weighed the actual demand.

The quick spiral downward began in the last quarter of 2006 and hasn’t stopped. Overnight banks cut credit to borrowers, and investors stuck in the middle suffered horribly. To make matters even worse, Wall Street cut off the supply of commercial, CMBS paper (loans to real estate investors), and thus banks we’re left stuck with large loan portfolios and no hope of being paid off by Wall Street. The Commercial Mortgage Backed Securities (CMBS) market was always an outlet for banks and borrowers. Investors would obtain bank financing to build an office building, for example, and within a short period of time, pay the bank back with new loans from Wall Street. As soon as Wall Street stopped the flow of money in 2007, financial matters for banks became unbearable. Big banks had to borrow from the Federal government, and small banks just failed; new loans were nonexistent.

Fast-forward to today, the second quarter of 2011, and things haven’t changed. New home sales remain stagnant, condo towers remain empty, and commercial space is still vacant. Bank’s REO (real estate owned) portfolios remain at record holdings as foreclosures and bankruptcies continue at a rapid pace. 

SO, where does an investor go to borrow money to take advantage of vastly discounted real estate prices? Unless you’re a public company that raises money via the stock market (which none of us are), you must go to nontraditional sources commonly described as “hard money” lending. What is hard money lending? “Hard Money” typically refers to small loans, generally 0k to mm. It usually involves a quick approval process (48 hrs), a 65 to 70% loan against your total purchase, and funds within two to three weeks. Because hard money is usually used to buy distressed real estate, and the loan to value is conservative, personal guarantees are often not required. “Hard Money” lenders are typically private lenders that specialize in the “niche” lending market. They’ll do their own appraisals after their review of your financial proforma for the property you intend on purchasing. 

The key in finding good, hard money sources is to subscribe to a service or find a broker who ”runs in those circles.” In other words, you’re not going to find these sources in your local yellow pages. There are excellent buys out there so take advantage now!

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How to Make Money in Real Estate From Scratch.

Posted on October 1, 2011 by admin

Just about everyone who goes into real estate tends to do it alone or with their partner. Usually what this means is that over a working lifetime they only manage to pay off the loan for one maybe two houses. What people fail to see is there is a way to be a lot more successful even with the same income and spending.

The solution is a little complicated but a good accountant or lawyer can handle the books. You have your income but what is really important is what the surplus is. In other words how much do you have once you spend money on bills and living expenses. For most people it’s not a great deal of money, but lets suppose you found ten people, or a hundred people who all added their surplus’s together, how much money would there be then?

If it was a hundred a week let’s say, it would become a thousand or ten thousand each week. instead of spending this money, you could as a team buy ten houses that were positively geared (meaning the rent was more than the loan repayments) and pay them off with the tenants, perhaps doubling, tripling your money invested in real estate within a few years.

You might say that’s risky, what if I get bad tenants or can’t find positively geared real estate, what about land tax, tenants insurance,rates, tax and all those costs? This is true, so the key is to pay off enough money on the ten houses (more than the minimum) by having a long term loan, low repayment rate, so that you can then refinance it again for an even lower minimum repayment making it more positively geared.

Once you are making a decent profit from the rent all costs considered, you can then stop paying off those properties let the tenants pay the costs and take the money to add to your weekly combined surplus and buy another ten, repeating the same process only faster this time.

Lets say a house cost 0,000 for arguments sake you could buy the one house in a few weeks (with ten thousand a week), and rent it out and pay for it all at once but then you would be buying the real estate, not the tenant buying it for you. By taking a longer time to pay it off you will pay more interest on paper but it doesn’t matter if it’s not your money, and you’re using your money to duplicate a thousand times over.

This plan relies on a strong community spirit and a very good bookkeeper but it is possible and is being done all over the world by smart investors in real estate. The higher the surplus the more wealth you can build by setting up houses that pay for themselves, and you can make money in real estate, practically from scratch, with the help of your friends.

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American Cities With The Most Over Valued And Under Valued Real Estate.

Posted on October 1, 2011 by admin

Coming in at number one for the most over valued real estate is…..”drum roll please”……. Naples Fla. Eighty four percent of homes in Naples were valued over a fair market price, according to statistics by Richard Dekasser of National City Group in 2006. The local chamber of commerce along with local real estate agents dispute this report (imagine that). Now, four years later Naples real estate sells for a thirty percent discount. The average homes in 2006 were selling for 0,000 and are now valued around 0,000 are the statistics gathered in 2010 from National City Group.  Real estate in 213 cities was considered over valued in 2006, now just 87 cities are considered over valued. What a difference four years can make.

Today Atlantic City Nj is the most over priced city in the US at 30.2 percent over fair market value. A close second place, coming in at 28.9 percent is Wenatchee Wa. The third most over priced city is Ocean City Nj. Las Vegas on the other hand, currently has the most under priced real estate in the country at 41.4 percent under market value. Looking for a good place to invest in real estate? Las Vegas might be the place for you to get the best ROI (Return On Investment) with the most under priced houses in the country. Don’t like Vegas? That’s ok neither do I, how about Vero Beach Fla? Vero Beach has the second most under priced homes in America at 39.8 percent. Third is Merced Ca at 37.7 percent followed by Cape Coral Fla at 36.8 percent.

All of these statistics were determined by local interest rates, comparing median home prices, population income and densities over time. Location. location, location, is also an important factor when determining value. For example, a house in downtown Detroit doesn’t have the same appeal as say a house in San Diego Ca. San Diego has great year round weather and beaches and Detroit has bitter cold winters and no beaches. Research shows that when you get a housing bubble burst, you just don’t go back to normalcy, you go beyond to undervaluation. Some reasons for this are due to builders making huge profits in  area run ups. They start making these profits and the builders over build resulting in an excess of inventory that brings down the price of real estate (supply and demand). Also, psychologically, people lose confidence in the market and stop buying homes when they see or experience the drastic drop in the  value of real estate. Four years ago, mortgage companies  were writing mortgages to anyone and everyone who wanted a home whether they could afford it or not. Now lenders aren’t approving these mortgages and are much more restrictive than before due to the colapse in the economy. All of these factors contribute to less people buying realestate, thus driving the price of homes down.

Here’s a list illustrating the most over valued homes in 2006 and 2010.

Metro areaMedian home pricePercent overvalued 2010Percent overvalued 2006Atlantic City, N.J. 2,100 30.2%59%Wenatchee, Wash. 0,900 28.9%13%Ocean City, N.J. 4,800 26.6%47%Longview, Wash. 4,700 22.3%24%Honolulu, Hawaii 5,300 21.9%31%Asheville, N.C. 2,900 21.8%24%Portland, Ore. 7,600 20.8%35%Bellingham, Wash. 0,200 20.0%43%Corvallis, Ore. 6,400 18.9%14%Salem, Ore. 1,000 18.2%25%Source: PNC Financial Services and IHS Global InsightMetro areaMedian home pricePercent undervalued 2010Percent undervalued 2006Las Vegas, Nev. 9,700 -41.4%38%Vero Beach, Fla. 3,300 -39.8%54%Merced, Calif. 2,300 -37.7%77%Cape Coral, Fla. 8,700 -36.8%52%Houma, La. 6,200 -34.6%-1%Port St. Lucie, Fla. 5,600 -33.3%72%Warren, Mich. 7,500 -32.3%15%Vallejo, Calif. 6,900 -31.9%53%Modesto, Calif. 8,700 -31.8%67%Stockton, Calif. 5,100 -31.8%72%Source: PNC Financial Services and IHS Global Insight

Here is a list illustrating the most undervalued homes in 2006 and 2010.

Metro area Median home price Percent overvalued 2010 Percent overvalued 2006 Atlantic City, N.J. 2,100 30.2% 59% Wenatchee, Wash. 0,900 28.9% 13% Ocean City, N.J. 4,800 26.6% 47% Longview, Wash. 4,700 22.3% 24% Honolulu, Hawaii 5,300 21.9% 31% Asheville, N.C. 2,900 21.8% 24% Portland, Ore. 7,600 20.8% 35% Bellingham, Wash. 0,200 20.0% 43% Corvallis, Ore. 6,400 18.9% 14% Salem, Ore. 1,000 18.2% 25% Source: PNC Financial Services and IHS Global Insight Metro area ▼ Median home price Percent undervalued 2010 Percent undervalued 2006 Cape Coral, Fla. 8,700 -36.8% 52% Houma, La. 6,200 -34.6% -1% Las Vegas, Nev. 9,700 -41.4% 38% Merced, Calif. 2,300 -37.7% 77% Modesto, Calif. 8,700 -31.8% 67% Port St. Lucie, Fla. 5,600 -33.3% 72% Stockton, Calif. 5,100 -31.8% 72% Vallejo, Calif. 6,900 -31.9% 53% Vero Beach, Fla. 3,300 -39.8% 54% Warren, Mich. 7,500 -32.3% 15% Source: PNC Financial Services and IHS Global Insight

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Become A Commercial Real Estate Negotiation Expert

Posted on September 12, 2011 by admin

Your negotiations skills will be put to use, not only in the process of creating an offer and working to get it accepted, but also with your contacts, brokers, buyers, sellers, engineers, and lenders. In any situation where there are more than two interests, you can rest assured that negotiations must take place in order to satisfy everyone’s goals.

Many people are afraid of negotiation, usually due to lack of experience. Once you begin practicing your skills, it will get easier for you, and may even become fun! Negotiation is filled with tactics and problem solving that are used to yield the best results for each party by search the mn mls. Being a good negotiator is very important to this business.

There are different negotiating styles that work for some people, and not others. For example, some find success with a very strong, even intimidating approach in negotiation. I prefer to use a straight forward approach. I am prepared, informed and persuasive. I am confident, as I have anticipated the questions and concerns the other party may have, and will answer them, as needed. This helps me to clearly and confidently negotiate terms. As a result, closing deals is often easy and fun. It is true that different styles should be used in different situations, so study others who negotiate and develop a style that works best for you!

In commercial real estate, as in most businesses, it is best to yield to an agreement that is win-win, meaning both parties are satisfied with the results at some level. If the strongest concerns of each party are addressed and a solution results, the agreement is of mutual benefit to both parties.

If you are not familiar with negotiation, I suggest that you take a class, purchase a book, or find a seminar that covers the basics of negotiation. There are many generic tips and tactics that will sharpen your negotiation abilities, and make it easier for you to get what it is that you want out of an opportunity.

In commercial real estate, there are specific negotiation tactics that can be written into contracts. Many of these tactics require some creativity and are specific to certain situations. Don’t be afraid to get creative; after all, this is where commercial real estate gets really fun! You’ll be surprised how you don’t have to have everything figured out when you put a property under contract!

In commercial real estate, it is always a good idea to write a letter of intent before actually purchasing a property. In residential real estate, a letter of intent is usually not necessary, but in commercial real estate, I consider it a necessity.

The letter of intent should be clear, concise and not in legal format. It should appeal to the owner as a direct, personal letter, explaining your purchasing intentions with the property. Many people put in terms, closing dates, length of due diligence, and so on in the letter of intent. Negotiation can take place here, without any money being permanently spent by the buyer, or a deal completed. It can open a dialogue between you and the buyer, and start negotiations early in the game without anything being set in stone.

Another tactic that can be written into the letter of intent is known as an option contract. This option contract is a good way to investigate the property; you then have time to begin putting together a deal to make sure it is feasible. You can offer a certain amount of money to tie up the property in order to do some initial research, and not even mention closing a deal yet. This is a great option that can allow you to decide to move on with a property and begin negotiating, or simply move on to the next opportunity in a short amount of time. The option can be as simple as 15 days to do some preliminary work with ,000 at risk. At the end of the 15 days, you may option for a full due diligence period and continue with the purchasing process.

When negotiating an offer, and you still have some questions left unanswered that will be unveiled during the due diligence, you can always write an item subject to or contingent upon the ability for you to do to the property what you intend. For example, if you are purchasing raw land zoned R-1, single family housing, and the broker mentions that the city would be supportive of rezoning the property commercial, which would greatly increase the return on investment, then you could write in the contract that you will purchase the property if you can get the property rezoned to commercial. This is done often, and works with many different variables that could affect the use of the property.

Writing in contingency clauses can be a great way to protect your interest and make sure that you end up with a property set up properly with a favorable exit strategy.

As we all recognize, seller’s have specific needs that need to be met. A buyer may really want to take the opportunity that the property would provide, but realizes that he or she may not be able to satisfy all the needs of the seller up front. A negotiating tactic that would work here would be for the buyer to satisfy the seller’s needs in two or more parts.

The buyer could set up two dates to pay the seller- with money in the beginning, and then money at the end of a certain period. This would allow the buyer to take the profit that he made from the property, and give the seller his money. As long as you satisfy the basic, up front needs of the seller, he or she may be willing to accept these terms, and you are on your way to fulfilling another opportunity!

As there are many other negotiating tactics that you will create to satisfy the requirements to make a solid deal, there is a really great tactic that allows you to continue to invest money into commercial real estate without paying taxes on capital gains! This option was made possible through the Internal Revenue Service tax section 10-31, better known as the 10-31 Exchange. This allows for sellers to use the profit from the sale and reinvest it in another commercial property without paying one cent in taxes! Can’t get much better than this for investors!

There are investors who are strictly involved in 10-31 exchanges, and it is a great way to keep the cash flow moving from one property to another with the benefit of full profits and no taxes. Sometime this tactic is a great choice and should be added to the contract when it can be optimized.

As you can see, the negotiation tactics in commercial real estate are there to protect your interests and maximize results. Be creative with these negotiations, and always be confident when walking into a deal. Be prepared, informed and persuasive. It is also necessary for you to keep your emotions at bay and your ego out of negotiations. You have to be prepared to walk away from any deal that cannot be made to fit your needs.

Always make an effort to sharpen your negotiating skills, and finely tune the tactics you use to increase your bargaining power. Having a few extra �tricks� up your sleeve will enable you to make a deal in your favor and get the results you want.

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Is It Best to Choose the Most Seasoned Real Estate Agent You Can Get?

Posted on August 7, 2011 by admin

Choosing a Realtor is a vital part of buying or selling a home. You depend on your agent to know all the traps of the business better than you yourself do, and they work on your behalf. That means they will to find the best deal for what you want and need in your search. This may seem to be an odd question to ask after going over the importance of the charter to represent and protect you, but with that given, consider: is an agent who has many years of experience always better than the one who has recently entered the industry? Or might it be the other way around? As you might expect, there isn’t a right answer to that question that will fit everyone, but both experience levels of situations have their own advantages and disadvantages. Here are some advantages of hiring a newer agent.

Newer Agents are Not As Busy

When a Realtor is just starting, it takes awhile to build up a respectable following. With a new agent, you could even be their only customer! That means more personalized attention. They have more time to work on your individual case, since they won’t have to share their day as much among competing interests.

New Agents Are Often More Energetic

If you have ever dealt with someone who is new in their field, you may have noticed an increased sense of energy. They tend to have a certain push to them so they can get noticed and build up a clientele. Whether you’re selling or buying a home, this can mean more money for you.

New Agents Could Charge Less

In an effort to build up a client base, some new agents may charge a lower commission. You can either see this as a way of getting a good deal or as a matter of “getting what you pay for,” but that’s up to you.

New Agents Can Be More Understanding of the Client’s Needs

Some people have the impression, correct or not, that some agents who have been working in the real estate industry for a long time have a strong selling approach. Newer Realtors may be more apt to listen and learn when working with clients. You may prefer that as a refreshing approach.

These advantages are not meant to say that Realtors who have been engaged in selling real estate for many years are any less effective than newer agents. In fact, agents with many years of real estate experience have several advantages that you will not get with inexperienced ones. The choice between hiring a new agent and an experienced one is a personal choice. Just go by the person’s skills instead of how many years they have been in the real estate industry.

The opinions expressed are those of the real estate writer, not our opinion. For more on the real estate business, including advice from some very experienced agents, click the link.

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Pagosa Springs Real Estate: Guidelines as Well as Things To Ask Before Buying

Posted on July 28, 2011 by admin

When home buyers call
our Pagosa Springs Real Estate office, a lot of them already have in mind the type of house they are considering
obtaining. From the private retreat of a Colorado mountain
ranch towards the simplicity of an in-town
apartment, there are a lot of
splendid
choices. Nevertheless as well as knowing the
basic kind of residence
you need, you ought to come ready with a collection of queries that may help
you and your own Realtor hone in on your
own perfect home. There are many aspects to evaluate when buying property at any
place. Pagosa Springs, CO isn’t any different, and
right now there are a handful of
factors which are distinctive to the rural mountain paradise.

Any time choosing to purchase
property from the Pagosa Springs Real Estate realtor, there are numerous
considerations you should keep in mind. You need to determine if the exact property that
you are considering purchasing has
properly maintained roads around
it, and also what utilities can be obtained across the
location. It’s also advisable to determine whether the property you are searching
for is within a fire protection district. You
should also question your
Pagosa Springs realtors if you need to drill to create
your own well, or perhaps is there one
ready, or even better, have they got water tanks. It’s also wise to find
out the actual permits you will need if you wish to build
your own home or set up something such as your own septic system. You
could talk with the Pagosa Springs Real Estate agent just how far will be the actual
property you tend to be interested is
within range to a nearby town. Additionally it is crucial that you learn concerning the rules as well
as law of the particular area
as well as just what will be the
taxes as well as special tax which they
impose in that location.

These are among the actual
concerns that you are
entitled to ask the Pagosa Springs Real Estate agent,
and they must do whatever they
can as a way to
respond to these types of
concerns for you. Make sure to become thorough
with regards to your
choice, as well as enlist help
from your dependable Pagosa Springs
Real Estate agent. A superb Pagosa
Springs Realtor could help you with determing the best property or
home achievable. So while you
observe promotions for Pagosa Springs CO
homes for sale that you may be thinking about, you may
contact your Pagosa Springs Real Estate agent for more information about that
home. You’ve every
right to ask as well as discover
about the properties that you
will be thinking about purchasing,
and if the Pagosa Springs Realtor will be
reluctant or not able to assist you with your inquiries, you need
to discover a different Pagosa Springs
Realtor.

Remember that regardless of
what kind of property or home you are searching for, it
will always be imperative that you learn around you’ll be able to relating to that home
as well as region, along with don’t neglect that your
pleasant Pagosa Springs Real Estate agent must be able to assist you with
this.
 

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Can You Make Money in Today’s Real Estate Market?

Posted on July 26, 2011 by admin

The implosion of real estate prices in the last two years has encouraged many would-be investors to jump into the foray of real estate ownership. Prices, in some cases, are at multi-year lows, and some properties are being offered for what was previously thought of as ridiculous discounts — 70% to 80% lower prices. With such discounts also come reduced property taxes, which are assessed, in Florida at least, as 2% of the purchase price, minus a variety of discounts, such as the ,000 homestead exemption, depending on the buyer’s status. Add to that some deeply reduced insurance premiums (because a lower-priced property now has less to insure), and you have a compelling motivation to buy — and in many cases, buy more than one property. For example, a house that sold at the peak of the market for 0,000 was recently sold as a short sale for 5,000 — an enormous discount. The buyer intended to live in the house, and therefore, qualified for the homestead exemption; thus, based on a simple arithmetic calculation of 2%, the property taxes on the home went from a high of ,000 (0,000 – ,000 x 2%) to the current assessment of only ,500 (5,000 – ,000 x 2%) — a mere 27% of the prior assessment. Homeowners’ insurance dropped from 00 when the house was worth 0,000 to a current ,100. Assuming a 20% downpayment, and again assuming a simple mortgage rate of 5%, the original house carried a mortgage amount of 0,000, but the current house carries a mortgage of only 0,000. A fraction of prior costs.

But caveats are in order. The old adage that price isn’t everything, applies. The real estate market is currently in a state of great flux, not to mention great uncertainty. In the days of ever-increasing real estate prices, real estate property of all kinds was being built as fast as permits and materials would allow. And people bought at such a hungry, frenetic pace that prices accommodated the demand. The situation now is the opposite: people are waiting to buy; people are comparison-shopping (anecdotally, one woman claims to have looked at 800 properties!). The number of single-family houses on the market are growing daily, with great numbers of foreclosures and short sales flooding the market. The inventory of current real estate is huge, and will not abate for a number of years. Even if builders slow down the construction of new housing, the current slate of offerings needs to be absorbed by the marketplace, and clearly, not as many new households are forming as there are empty housing units on the market. Which will inevitably lead to lower prices. How much lower is unknown; however, pressing to buy at this time may not be in the best interests of the buyer. Of course, there are mitigating circumstances which might compel one to buy: for example, if one needs a place to live, and the combined costs of ownership are comparable to the cost of renting.

Moreover, some of the best “deals” are found in what are now considered blighted areas — previous new developments that now have only a few houses built and fewer lived in, surrounded by builders’ lots staked out for construction as far as the eye can see. One might think such living is quiet, with no neighbors, but in fact, living alone in a large development can also be risky; and the empty buildings do encourage criminal activity. Still, there are stalwarts who would elect such arrangements just to take advantage of the low price.

In such a situation, lifestyle might suffer, as school buses refuse to drive by because of construction debris left in the road; children do not play outside; and other impediments to what usually makes for an enjoyable life in a new neighborhood.

Many a current buyer jumps on the real estate bandwagon because the prices seem so ludicrous, that “flipping” seems an ideal road to riches. True, some lucky few succeed: they buy a property at a rock-bottom price, spruce it up a bit, then resell it for a small margin which is still below current market prices, and thus are able to make a business profit out of the deal. But remember that real estate is notorious for not being liquid, and especially today. At the height of the market, sellers were in charge, and demand was booming. Now, the opposite is true: inventory is huge, and buyers are few. Combined with a depressed economy (owing to a large extent to the real estate fiasco), and you have a preponderance of skittish buyers of lesser means and lesser credit. That does not bode well for reselling your property once you have bought it. Add to that the current uncertainty — and in some cases, scrutiny — of banking practices, which make them reluctant to lend, this makes obtaining a new mortgage an onerous affair. Not to mention the current title insurance snafu that is making many title companies unwilling to issue title insurance, and you are looking at what to some might be an untenable situation. I would not want to be the holder of a property that I am trying to sell to a public that is largely unable or unwilling to buy, or if willing and able, then a public that has to jump through so many hoops in order to buy; meanwhile still paying necessary expenses on such property. Unless, of course, I need a place to live, and am content to sit in my property until such time as the market changes.

Real estate ownership has been billed as the greatest road to riches in the United States. The richest people in America have been touted as having started in real estate. And to be sure, tremendous deals are to be found. But for the average Joe, I submit that there are better places to park your money; there are better ways to make money, especially if that means not putting it on a piece of real estate that may still have a way to go — down.
 

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Calgary Real Estate Residential Sales

Posted on July 26, 2011 by admin

Open Houses in the Calgary Real Estate Market.

Realtors in the Calgary Real Estate market use the tool of doing “Open House” for seller properties for a variety of reasons. The least of which should be to sell the property.

I believe that the Open House was designed specifically to sell the house. The sellers in the Calgary Real Estate Market allow you to open the house to the public so that they can come in and have a look at it specifically for the purposes of selling the house. So when you are buying and previewing open houses in the neighborhoods you’d like to move to don’t be surprised by the agent sitting in the Open House to try and sell you on the house. That’s their job. That’s the purpose of the Open House.

In the Calgary Real Estate Market the open house is held on the weekends. Sometimes you’ll see an open house around the supper hour on weekdays but typically it is on the weekend in the afternoon. That is the time that most people expect to see an open house.

If you want to have a successful Open House in the Calgary Real Estate market you might want to consider the following tips:

1. De-Clutter

There are so many houses in the Calgary Real Estate Market today that have WAY too much furniture. Pack some of that stuff away and store it off site. Check my blog on Temporary Storage in the Calgary Real Estate market. The best way to think about it is to think that every time you remove 1 box or 1 piece of furniture from your house you’re putting 0 in your pocket.

2. Clean Clean and more Clean

I’m not talking about just vacuum, dust and put some dirty clothes away. I’m talking about steam clean the carpets, vacuum the upholstery and clean those hard to get places like cupboards, top of the fridge or under the sink. There should be no dust or cobwebs anywhere to be seen or not seen. Again the Calgary Real Estate Market is full of houses that are DIRTY. I sometimes don’t even want to take my shoes off when I’m showing those houses.

3. Repairs.

Somethings just need to be fixed. Leaky faucet – Fix it! Toilet that doesn’t stop running – Fix it! Think of it as if you were moving in. What would you think if those things weren’t fixed? Would you pay top dollar for something that has tons of little things to be fixed?

4. Make it look good!

Cut the lawn. Remove the leaves. Make it welcoming from the moment the potential buyers drive up to the house.

5. If you can Smell it – you can’t sell it!

Get rid of the things that smell. Don’t try to douse the smells with perfume or air fresheners. People can smell right through that. Find the problem and eliminate it. Pets, Smoking, Mold and Mildew are all things that can be resolved.

These things should help you sell your property during that open house in the Calgary Real Estate market.

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