July 7, 2008
The fact that the real estate industry is at a low point right now is not a secret. However, even Harvard has taken on the real estate market to analyze what is currently influencing and affecting the industry.
Home prices and sales in the real estate market have plummeted. In addition, foreclosure statistics are increasing dramatically and rates to secure a new mortgage are rising. With the housing market looking so bleak, Harvard studies decided to see what factors impact future housing decisions. Most importantly, these Harvard studies want to see when the real estate market will improve as the industry has a strong impact on the overall economy.
The current real estate market has many home owners wondering, how can I sell my house, where are all the home buyers. When the real estate market takes a turn for the worst hundreds of thousands of home owners are stuck with a home they either can not afford or do not need. For this reason Harvard has decided to study the real estate market and decipher, what will bring the real estate market back to life.
According to the latest study from the Joint Center for Housing Studies of Harvard University, the future is looking bright. The country is set to improve in the real estate sector in the next decade. Specifically, the demand for housing will help to offset the current problems in the industry.
The best news for the housing market is that the United States is growing. With an increase in population, the need for places to live will grow exponentially, helping to drive the need for more houses. In addition, there are a variety of social trends that will help fuel future housing increases. People are getting married later in life and getting divorced more and more frequently, making the number of single person households increase. In addition, there is a higher life expectancy for baby boomers and echo boomers.
Finally, immigration will play a large role in the increase in housing demand with an annual projection of 1.2 million each year. In other words, from 2010 to 2020, the number of households needing a home will increase on average by more than 1.4 million each year.
This increase in housing demand will play a critical role in improving the current real estate market. Once the effects of subprime mortgage rates and other housing impacts become steady again, the real estate market will see an increase in the industry due to these social factors and immigration.
However, before the good times in the real estate sector can begin, the number of unsold homes must decrease. The number of vacant homes currently available for sale rose 46 percent to a total of 2.12 million homes from 2005 to 2007. These vacant homes have terrorized the existing real estate market, lowering prices and halting new construction. As of earlier this year, there was an 11 month supply of unsold new homes.
If you need to sell your vacant home I suggest contacting your local home buyer in your area. Local home buyers are professional real estate investors who purchase houses quickly for cash. This service helps you sell your house quick so you can move on with your life. Besides, a vacant house could be a great home for another loving family.
To compare, a six month supply is considered a buyers market and the 11 month statistic shows the deep increase in unsold homes currently on the market. With a reduction in supply, prices will again rise, interest rates will go down, employment will increase from construction and other related industries and consumer confidence will once again climb.
The factors that impact the real estate market are set to change our current dip. All we need now is time to bring about the social changes and immigration in order to see the housing market back on its feet again. When this happens home owners will have a better change to sell their house fast for the price they need. Until then, if you are thinking how can I sell my house myself for a fair price, contact your local home buyer.
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Posted by Shaun G.
July 4, 2008
What would you do if your bank called to tell you that your home equity line of credit had been frozen or even cancelled? For most homeowners, shock would be the first emotion followed quickly by confusion.
Why would banks be pulling the line of credit from homeowners who have had no trouble paying off the loan. Banks have recently been pulling home equity lines of credit from all applicants, even those homeowners who never tapped the line of financial credit.
The number of homeowners who have been affected have been in the tens of thousands, as more and more banks are trying to stem mortgage losses. As banks are dealing with heavy losses from their subprime mortgages and additional high risk loans, the viable home equity loans are also taking a hit as the bank pulls the money before this equity credit line also becomes a problem.
Essentially, banks are trying to save their money from being lost to homes that fall into foreclosure. There are many home owners who took out lines of credit on their house when the real estate market was high. Now these some home owners are needing to sell their house but are having obvious problems finding home buyers. The first thing home owners look to for money when they can no longer afford their mortgage is the equity in their house.
In late third period of 2007, the delinquencies on HELOC mortgages increased 47 percent from the previous year. Analysts have predicted higher numbers for 2008. For this reason, banks have been responded by pulling their Home Equity Lines of Credit, most of which were in high foreclosure cites like, Las Vegas Nevada, Stockton California, Boise Idaho, Miami Florida, Houston Texas, New Jersey, and Orlando Florida.
Where are you most vulnerable to have a frozen HELOC? If you live in a housing area where prices have fallen by 10 percent or more, your property might be the prime target for a HELOC freeze. There are new lending standards which means that your HELOC will be in danger of disappearing if you bought your home with little money down, especially if you purchased your new home within the last few years.
These factors will combine to see a higher rate of foreclosures and might make your financial institution feel that they need to pull the plug on the HELOC before real money troubles begin. Whereas lenders were able to borrow as much as 100 percent of the home value in previous years, most homeowners cannot see more than 90 percent or even as high as 60 percent in some areas that have been severely hit by declines in the housing market.
If you established your HELOC a few years ago, you might be in for a surprise. Current lenders are applying the same revised standards retroactively to current HELOC owners. In order to verify your loan cap, you should contact your bank to see if your loan is at risk. If you miss a payment or have a change in your credit score, your HELOC might also be flagged for a potential freeze.
What should you do? If you are using your HELOC to finish a renovation, you can potentially pull out a lump sum in order to finish the project. You will want to only take what you need so that you do not get into harder financial troubles.
If your HELOC has already been put on hold, you can fight the decision with your financial institution. Look to see why the line was suspended and what you can do to appeal the decision. As many banks automate the process to freezing the loans, you can appeal to a person for a reverse in the decision.
If you are thinking of using your home equity line of credit to pay your mortgage while you sell your house, you might want to pull money out quick. The banks are implementing this new freeze standard nation wide so save the money they have. Your best option to sell your house fast is to get an offer from a local home buyer. These professionals are in every major city in the nation and make their living from helping people sell their house fast.
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Posted by Shaun G.
July 2, 2008
You want a bigger and better home. However, with the current housing market the way that it is, you might not be able to sell your house for what you want. There are homeowners that have spent billions of dollars renovating their homes during the better times. Many home investors see their renovations as necessary steps to increased home prices and a higher possibility of faster sales.
Why not take that concept and apply that to your home now? Rather than see home improvements as a way to appeal to your future seller, why not use home improvements to make you happier…right now! With home sales down almost 18% in just the past year, you probably will not make the right decision by putting your home on the market. However, you can make your existing home more sensational now to make your daily living enjoyable. With more and more home prices stagnating, homeowners are making their current homes the places they want to live rather than trade up to another place.
Give your home the features that it needs to improve value. You can have an upgraded bathroom or higher end kitchen installed in your home now to help with future house sale and daily living now. However, to enjoy the most from your home improvements, do not focus on the financial future growth, but instead concentrate on how much you are enjoying the changes.
What are the biggest complaints by current homeowners? You can address these common concerns to help your existing home situation. Of course, the first solution is to create a home extension on your home to make bigger rooms, kitchen, etc. Of course, this upgrade can be financially difficult. Many homeowners say they want at least a 30% increase in home value square footage size with their new home. If this is not possible, you can at least create the illusion of more space. Take off unneeded doors or install glass French doors in their place. Light the walls with brighter color paints or knock down a half wall. If your wall is not load bearing, it is decorative and able to disappear.
Removing a wall can vary in cost. You can pay as much as $4,500 and as little as $1,500. Load bearing walls will be the most difficult to move and will cost the most for your home. However, the end result could be the most dramatic and potentially convince you to stay in your home for longer than initially predicted.
Do you have wasted space or rooms that are infrequently used? Look at them in a new light and see if you can add them more efficiently into your current floor plan. Finish a basement or turn a sunroom into part of the living room. In addition, you can expect to recoup 75% of your costs and will add to your home value.
Just a few modern conveniences can turn around your bathroom or kitchen. Best of all, when it comes time to sell your home, the bathroom and kitchen upgrade will significantly help in the future sale of your home. Invest for yourself now and you can benefit with your sales in the future.
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Posted by Shaun G.
June 30, 2008
The news has been filled with stories on environmental disasters lately. As more and more storms roll over the country, citizens in the coastal communities and in the Midwest alike are asking the same question: Is my house safe? And if not, will my home owners insurance cover me for my house value?
For most people, their home is their biggest source of financial equity and the biggest part of their portfolio. To lose a home in a vicious storm not only puts the family on the street, it can be financially devastating as well. Many homeowners are overly confident in their home insurance and the coverage it provides. But will your home insurance really protect you and your home after a storm devastates your property?
Mudslides are typically covered by the standard home owners insurance policy. After all, mudslides are often associated with California, but nowhere else in the country. However, many homes that live on the banks of rivers are in direct threat of losing their home to a mudslide after a tremendous storm with flooding. If your home washes away in a mudslide, you can effectively lose everything, even if you have been a patient and conscientious insurance payer for decades.
Look to see what your home insurance coverage provides. Many standard home owners insurance programs do not take floods, mudslides and earthquakes into account, meaning that if the home is damaged this way, their home value will not be covered.
One of the biggest reasons why home owners insurance does not cover these possibilities is due to the risk factor. Many homes are not located in high risk areas where a mudslide is probable and for this reason, the insurance companies do not want to take on the coverage. Secondly, this type of insurance coverage can be very costly and expensive. If you live in an area that does not have the risk of mudslide and the addition coverage is expensive, chances are you will forego that coverage. And just like that, if your home floats off the riverbank and down the river, you will have lost everything.
Ask your home insurance provider about potential options with your coverage. There are some insurance companies that will offer flood insurance at a discount rate for homes that are not located within a flood zone. You can potentially get coverage for just a few hundred dollars a year and eliminate that risk for your property.
Another smart option is to talk with the experts. Get a mud engineer to come out and look at your property. If you are located on a river bank or on the side of a mountain or hilly area, you might be concerned about mudslides in general. Have an expert come to your property and do an analysis on the mud and soil located under and around your home. With his or her results, you can make a more educated decision about the likelihood of a mudslide happening to your property and adjust your insurance coverage accordingly. Of course, if a mudslide is more likely than you thought, you might want to consider moving!
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Posted by Shaun G.
June 26, 2008
When it comes time to sell your home, curb appeal can be tremendously important. From the start, your home needs to make a solid first impression that will carry the future home buyer into the house on a positive note. Even if your home looks wonderful, however, your neighbors house and the surrounding community can play a role in curb appeal. No matter how much fresh paint or new landscaping dots your front lawn, you will need to worry about your future buyers seeing the eyesore next door.
Eyesores are a common problem. Studies have shown that more than 60% of all homeowners think they have a neighbor that is making their street look bad by not taking care of their home fronts. Roughly 20% of these individuals even claim that they are the cause of the problem! Life can be busy and things like tall weeds and grass, dying lawns, junk in the lawn or peeling paint can be projects that are pushed from one weekend to the next, until the home is an official eyesore. In turn, affecting the your house value.
The crumbling house next door might be something to avoid when you live in your home, but when you are trying to sell your house, that eyesore now becomes a liability to you. Especially in buyer driven real estate markets, the eyesore next door can translate into lost revenue for you. They will become yet another negotiating tactic for the appraiser and the future home buyer.
How much can you stand to lose from living next to an eyesore? Some calculations go as high as 10% off the value of the home. Of course, different markets will see a different percentage taken off, but all in all, the eyesore is a poor value assessment for your property. What is a homeowner to do?
There are two types of people that have homes that are in disrepair. The first type cannot physically or financially afford to maintain their home and the second are those who are ignoring the common courtesy and trend of maintaining a home. If the home is rented out, you can try contacting the owner well in advance of putting your home on the market. In addition, you can build a group effort that will allow homeowners with limited funds the ability to apply for funds to keep up the exterior of the home.
There are laws that will prohibit certain behavior that can help you address the issues your eyesore has created. For example, there are certain municipal codes that will not allow you to stockpile wood on your property for fear of attracting animals.
However, the smartest move can be to raise your asking price above what you had originally planned. That way, you can negotiate down due to the eyesore next door, but still come out on top with the price that you had initially aimed for. Just a little upkeep can significantly improve the outer appearance of any home, but dealing with an eyesore can be an important part of your home price negotiations when selling your home.
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Posted by Shaun G.
June 24, 2008
Home improvement has become a hot topic and even hotter investment over the years. Many people are adding on and upgrading, educating themselves on the right home improvements and additions that will make their home and financial investment stronger so they can sell their house fast.
One of the top tricks to home improvement, however, is labor. From the start of the project to the end result, if you do not have a lot of experience in home construction, the best suggestion is to get the right contractor. If you do have experience in home construction, but will want a helping hand, the right contractor on your project can make all the difference.
It used to be that contractors would only entertain the idea of working with you if you had a lot of money or were a celebrity of sorts. Nowadays, however, with fewer and fewer people making significant hundreds of thousands of dollars types of home improvements, contractors have become easier to find. Many contractors now specialize in the side upgrades and improvements that the average homeowner is interested in to help improve your homes assessment. However, just because the contractor calls you back does not mean that he or she is the best person for the job. How can you tell if you have found the right contractor for your home?
What’s his reputation? Before you allow a contractor to make any serious changes to your house, it pays to see what he has done before. Call up other construction companies or other local industry experts like your favorite plumber to see what the contractor has done before. Use search engines to google his or her name to see if there are any comments online. One important thing to consider is how many references he has. Even a bad contractor could convince some clients that he did a good job. If the contractor has a long list of references, they are both experienced and well-liked. Doing your research now can save you future heartache when you go to sell your house and avoid foreclosure.
Does his business card have a local address? If the contractor gives you his physical address, he is much less likely to skip town and drop the job at your home. If he has a post office box, don’t immediately dismiss him, but you will need to get more information on this individual before you begin.
What are some things that should concern you? If the contractor wants cash up front and only cash will do, warning noises should be going off in your head. If he wants cash, he is most likely avoiding taxes and possibly doing other illegal actions like hiring illegal employees and other mischievous problems. If he balks at applying for the permit or would rather have you do it, do not hire him. Permits are a complicated and serious task and one of the top reasons you hire a contractor. If he is asking you to do it, it could mean that he does not have the right licensing or has been barred from doing it due to past indiscretions on other home jobs. No matter what, this is a bad sign for a future employee of yours.
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Posted by Shaun G.
June 23, 2008
Some realtors will tell you it is a buyers market. Other times, realtors will rejoice that it is a sellers market. No matter what the season for real estate holds, one thing remains true, every buyer wants a lower price and every seller wants the highest price possible. It is possible to learn how to offer a low price on a home for the highest benefit for the buyer.
Currently, wise home sellers are not instantly rejecting offers that are coming in well below their asking price. With the number of homes on the market in their neighborhood combined with personal motivating factors to sell the home, many more offers are being entertained than in the past.
However, whenever you offer a lowball offer that is interpreted as insulting to a homeowner, you always risk offending the seller and utterly losing the transaction. How can you negotiate a low price without hurting the sellers feelings and still get a great deal? Information is key.
In order to make an aggressive offer, a smart home buyer will do his or her research. If you do your homework, you can make a savvy, lower offer that will make sense to both the buyer and the seller. In a market where the seller has the upper hand, a sellers personal motivating factors for selling, such as relocation for a job, divorce, foreclosure, combined with smart comparable data about the neighborhood can create the ideal situation for a buyer to make an offer on a home much lower than the asking price.
What are some of the risks for offering a sale price much too low without doing your research? After all, the worst they can say is no. However, if the buyer is serious about owning the property, a sale offer that is too aggressive can cause the seller to reject your offer and not deal with you. In addition, the seller might assume that the buyer is not serious about making a deal. However, with outside, unbiased data at your fingertips, the smart home buyer can make a strong argument for the price and see a higher rate of success.
Even if you believe the sale price is appropriate, there are other ways to lower the amount you put towards a home. Look for sellers who are strongly motivated to sell. For instance, job relocation or sellers who have already purchased and closed on another home. These home sellers will be more likely to entertain the idea of paying for closing costs or changing the close date for a lower price. Of course, if the home has been on the market for an extended period of time, the assumption is that the seller will be highly motivated to sell at a more flexible price. By negotiating these factors, you can see thousands drop from the bottom line of home buying.
Overall real estate conditions will be a large factor in the price you can get from your home purchase. However, it’s important to remember there are a number of other factors in addition to the market to help the home buyer to lower the price of their future home.
Many areas of the nation like Orlando Florda, Las Vegas Nevada, Boise Idaho, Austin Texas, Central New Jersey and others, are experiencing homes that stay on the market for long periods of time. If you are a home seller in this area and would like to sell your house fast, contact you local home buyer at ExpertHomeOffers.com. They buy houses fast so you can move on with your life.
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Posted by Shaun G.
June 21, 2008
It may have taken longer than with other industries, but realtors are starting to see the impact of the Internet on their incomes. While the Internet has provided easy access to much more information for realtors to do their job better, it has also given the same information to homeowners looking for ways to save while looking for a new home.
Specifically, sites like HomeGain and Zillow are showing realtors that their industry will need to change or they will be reduced in numbers. Since these websites are giving away precious real estate information for free, commissions are dropping for realtors.
What is the main motivating factor to sign on with a realtor? In one word, information is the key reason why most homeowners will choose a realtor for their home buying and home selling needs. After all, realtors have access to information the average person cannot obtain. However, with the appearance of HomeGain and Zillow on the marketplace, access to the information has now become public knowledge.
In the past, you simply could not buy or sell a home without the use of a realtor. Their access to the National Association of Realtors’ multiple listing services was essential to buying or selling your home in an appropriate amount of time at a price that suited the homeowners. Only real estate agents knew what homes in the area were being sold for and they were only willing to share that information for a commission, the standard 6 percent.
Now, however, real estate information has become available online and become available for free. Any average homeowner can get a estimate on their homes value through RealEstateABC, Zillow and HomeGain. Or they can get an offer on their house from sites like ExpertHomeOffers. Should a homeowner want to put their home out there for public access, they can easily place their property information on ForSaleByOwner and other sites.
Accuracy, however, is the drawback for these websites and currently, the saving point for realtors who might worry about the future of their careers in the face of these daunting information sites. Currently, Zillow can be slightly off on homes in neighborhoods where fewer properties sell. These sites will be more accurate in neighborhoods who have had a number of sales recently to better gauge comparables in the area.
However, a realtor will have a similar problem in a neighborhood that rarely sells properties and websites like Zillow have an advantage they are not biased. Whereas an overzealous realtor might inflate home estimates to win over prospective clients, Zillow and other similar websites tell it exactly like it is, for better or worse.
Another down side of not using a real estate agent in a new home purchase or to sell a home is that a real estate agent can protect your best interests. Home owners rarely buy or sell real estate and most need help through the process. It can be complicated and if you make a mistake it can cost you thousands.
However, if you need to sell your house fast you would be much better off selling to a local home buyer in your area. They exist in every major city in the nation and they buy multiple homes each month. They mostly deal with people who are facing foreclosure, moving out of state or recently inherited a home, but their service is free.
The change in the real estate market mirrors what happened with traditional stock brokers whose monopoly on trading information was threatened with the advent of investing websites. Just as these stock brokers had to change their offerings and lower their fees, so too will realtors have to change in order to be a viable and important part of the real estate market. Rather than fight these informational websites, realtors will have to find ways to make their services invaluable for the homeowners who will need their marketing skills and experience in the real estate market.
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Posted by Shaun G.
June 20, 2008
Who ever said increased gas prices would only affect consumer spending was not in the real estate business. As the cost of fuel increases it has rippling affects in the housing market as well.
With gas prices now over the 4 dollars per gallon in the United States, now natural gas is going up as well. When this happens home buyers look for smaller homes to keep the energy bills down. The big kicker is home buyers look for homes closer to their work.
What does all this mean. It means the condos and town houses that are close to down town, which is close to work for many blue collared professionals will see an increase in buyer traffic and sales. Now days living 20 driving minutes closer to work can add up to hundreds of dollars a month in savings. When home buyers add these savings up over years they will be in the house, and assuming gas prices keep going up, it makes the home buying decision that much easier.
So if you are wondering how the United States compares with other places in the world, here is a list of gas prices
Country $ per gallon
Belgium 8.44
Brazil 6.02
Canada 5.49
Denmark 9.31
Finland 8.90
France 8.06
Germany 9.20
Guatemala 7.38
Hong Kong 8.33
India 5.15
Israel 7.95
Italy 8.78
Japan 5.83
Netherlands 10.11
Norway 10.37
Portugal 8.90
Sierra Leone 18.43
Singapore 6.06
South Korea 7.38
Sweden 8.71
Turkey 10.14
United Kingdom 8.56
From looking at this data you can only assume that gas prices are not going to go down in the United States any time soon. In fact, it looks like 4 dollars per gallon is a good deal when you compare our price of fuel with other countries.
Would you like to
sell your house and
buy a house close to down town. If so check with a local home buyer in your area. They purchase many homes each month all across town in your local area. They then sell these homes to people like you, who are looking for great deals on nice homes.
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Posted by Shaun G.
June 19, 2008
Clutter can be a house selling nightmare. Show off how large and beautiful your home is. Even if you dont have a lot of space, you dont want to send the signal to future buyers that you dont have enough storage by putting your clutter everywhere. If you need to, put boxes and things in the trunk of your car or ask a friend who has room if you can leave a few things at his/her house for a few months.
At the worst, you might need to rent a small storage space. Although most homeowners would balk at the idea of renting a storage unit while selling their home, removing the junk and clutter can have a huge impact on your home-selling possibilities. If your buyers cannot see the walls, they can’t appreciate the little things that helped to sell your house to you in the first place.
Another sharp tip to selling your home faster is by organizing your closets. Nothing distresses buyers more than opening a closet that is packed and messy. It sends the signal that you cannot find room for your own clothes so how will they? Try to put your clothes and things in boxes and hide in the attic or in another closet to make the closets appear larger. Buyers want storage space.
If you are really thinking how can I sell my house. The best option is to contact a local real estate professional online to recieve a free, no obligation offer. It takes one minute to complete the online form and you can expect to receive an offer within 24 hours. These are professional home buyers who buy houses quickly from all kinds of people in all kinds of home selling situations.
Put away knickknacks, family pictures and other sentimental things to avoid drawing your buyer away from the home to look at your pictures. You want them to picture themselves in your home so that they will buy it. Although it might seem harsh to put away family pictures for the entire time that your home is on the market, but it can help your buyers see what they want a new home for themselves to create memories.
Do your walls need a fresh coat of paint? Interior paint purchases can be a wise move for homes whose walls have dulled. You might not even realize how much your walls have faded over the years until you put a fresh coat of paint on. Grab some friends and towels to cover the furniture and floors and get to work on putting a fresh coat on. You’ll be amazed at the difference.
Now that you have tackled the walls, how are your floors? Do you need to replace cracked tiles or chipped floors? Take the time to make the changes now in order to sell the property faster in the future.
Bathrooms and kitchens are huge selling point and there is nothing worse than seeing someone elses grim in your future bathroom. Kitchens and bathrooms need to shine brilliantly if you want the home to sell, including grout cleaning, fresh paint, clean appliances and scrub the tub or shower floor until it gleans.
These little tricks can go a long way in renovating and improving your home. Best of all, they don’t cost a ton of money, but will make your house stand out from the competition. Implement some of all of these tips and you are on your way to a faster home sale.
However, if you do not have the money or do not want to put the effort into fixing up your home and putting it on the market you can always receive a free offer from a professional local home buyer. They exist in every major real estate town and you have no obligation to accept their offer. You can sell your house quick for sale with owner and have no real estate costs.
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Posted by Shaun G.