Why Home Sellers Accept Low Price Offers

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. 


The Fate Of The Real Estate Agent

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.


Tips To Sell My House Fast

June 18, 2008

Although the real estate market might be a bit slow right now, there are always things you can do to speed up the sale of your home and you dont have to spend a ton of cash to make it happen. You can find small amounts of well spent cash that will turn your property into a show stopper that everybody will want to buy. You need to improve your chances of selling and get the best price possible for your new home.

If tons of cash comes to mind when you think of the word home renovations, think again. Although the big home renovation projects will cost you, there are a number of small cost choices that can have a big impact on the sale of your home. Typically, some of the most effective fix up quick tips are also the cheapest and have the biggest impact on the future sale of your home.

Stand outside in the front yard of your house facing your property. What do you see? Now pretend youve never seen the house before. What stands out? Do you have weeds? Chipped paint? A messy looking landscape system? Are there cracks in your driveway? When a potential homebuyer pulls up to your front door, they are immediately making judgments in their mind. Control that first impression judging with some lively, fresh landscaping in the front yard. Buy bright flowers or trim the hedges. If you need to clean your gutters or declutter your front yard, this manual labor can add dollars to your sale price and make it more likely to sell. Real estate agents call it curb appeal, but any savvy homeowner will just call it making a great first impression.

How does the paint currently look on the outside of your home? If you cant afford to give your entire home a new, fresh look, start on the doors and window trim. A quick new paint job in these areas can go a long way to making your home look brighter and more inviting. While you are working on the windows, be sure to clean the panes to make them sparkle. Remove any torn or old screens and make sure that the exterior lights work. Potential homebuyers could drive by in the evening to see the neighborhood and you don’t want your property to be dark and dreary.

Move onto the inside of your home. Are there any persistent smells? If you are trying to sell your home, you will want to cover up any bad smells like greasy foods, cat litter box or other troublesome odors. Many real estate agents will suggest baking cookies or bread before a visit, lighting candles before you show your home and numerous other tricks to ensure a positive smell when you future buyers walk through the door. One rule of thumb, however, is that you dont want to overwhelm them with any overpowering smells good or bad. Remember that a little bit goes a long way here.

The trick to selling your home is that you want to have a great impression from start to finish. You want it to be clean, obviously, but you also want to remember that your future buyers are experiencing your home from a variety of different perspectives.

If you need to sell your home quickly and do not have any cash to fix up your house contact your professional home buyer. You do not have to pay any money to receive an offer on your house and you have no obligation to accept the offer.


How You Are Affected By The Foreclosure Next Door

June 11, 2008

Your neighbor is facing a foreclosure. Not your problem, right. Think again. If you have a foreclosure in your neighborhood even if you are not struggling to pay the mortgage in your own home, it can spell trouble for your property. If you think the foreclosure crisis spells bad news for a number of individuals, but will have no impact on you, you are wrong. There are a number of reasons you should help your neighbor avoid foreclosure is you can.

Millions of Americans are losing their homes, but the impact is that these neighborhoods are drastically changing. If you live in a neighborhood that has seen a number of foreclosures, your property values could be at a standstill or worse dropped significantly. In addition, neighborhoods with heavy foreclosure statistics have been proven to see more vagrants, drug dealers and prostitutes as these people take advantage of the empty buildings. As more and more homes are seen to be empty, their friends pass along the word and the neighborhood will go downhill. This is just another reason for you to help your neighbor stop foreclosure.

When your neighbor has a foreclosure and the house is vacant, it is a welcome mat for vandals. Thieves love to frequent foreclosed homes, stripping copper wires, plumbing, carpet and more valuable items from the home, leaving it even more of an eyesore. All neighbors can do is watch helplessly as their neighborhood becomes less desirable to live in. In addition, broken windows and overgrown lawns send a clear signal that the neighborhood has fallen on bad times and that message will include your home. Inner city problems like graffiti and drugs will enter the empty buildings and have a stronger influence than the rest of the well meaning neighbors.

As foreclosures spike, gang activity and crime accompanies the problem hand in hand. Studies have shown that for every 1 percent increase in foreclosures, there is an associated and accompanied 2.23 percent increase in violent crime and problems. There have been numerous examples of the impact of foreclosures on such cities as the hard hit Cleveland, whose Slavic Village had troubles with foreclosures over a decade ago. Las Vegas, Jacksonville Florida, Miami Florida, Orlando Florida, Stockton California and many other area will feel the same changes.

The foreclosures from high cost loans transformed the middle class neighborhood to a series of empty eyesores, encouraging crime, vagrants and drugs. As the quality of life disappears, so do the prices on the homes, trapping existing neighbors into a lower value home in a decreasing neighborhood. More and more homeowners feel the impact of the foreclosure tidal wave.

Roughly 3 percent of all homeowners are thought to go into foreclosures by the end of 2009. However, from this small 3 percent, 43.5 percent of all homeowners will feel the impact of foreclosure crisis. This means that nearly 40 million homeowners will see their home values plummet in the next two years due to foreclosures. For each home, that is an estimated loss of 8,771 dollars. This is a significant loss and provides a definite tangible effect on the economy as many homeowners have the majority of their portfolio in the equity of their home. If the neighborhood is in a state that is more likely to experience a foreclosure, the financial depression can be even worse, making the average loss drastically higher, no matter what the other homes are doing.

So what can you do to help stop the foreclosure crisis affecting your neighborhood. The first thing you can do it talk with your neighbor openly about the issue. Let them know that you are a helping friend and are willing to help with their financial crisis. I do not mean by paying their mortgage but by finding a home buyer for their property. After all if you find a buyer the home will not go vacant and your home value will not go down.

Help your neighbor or friend who is facing foreclosure and thinking how can I sell my house, by getting them in contact with a professional real estate investor who buys houses to stop foreclosure. The fastest way to contact them is by typing the words Local Home Buyer into Google and completing some online forms. You will be connect with a local home buyer in your neighborhood that will give you a free offer on your house at no cost or obligation, so you have nothing to loose.


Celebrity Who Face Foreclosure

June 10, 2008

Evander Holyfield has recently joined the club of recent celebrities that are facing foreclosure or who have faced foreclosure in the past. His over $10 million dollar home is set to be auctioned off in Fayette County Georgia By Washington Mutual Bank on July 1st.

Mr. Holyfield is not alone in the celebrity club to see their home go to the auction block. Here is a list of other celebs who have received the nasty notice in the mail from their lenders.

Jose Canseco
Ed McMahon
Aretha Franklin
Latrell Sprewell
Mickael Jackson – NeverLand
Whitney Houston

It is always amazing to see people who have very large incomes face financial difficulty like many others in the nation. You would think with such a large bank account that these people would never face a financial problem in their life.
It just goes to show money management is more important than the number of zeros on the monthly checks you receive.


$1.7 Billion of Tax Payers Money to Stop Foreclosure Crisis

June 9, 2008

Currently, there is a bill in Congress that could change the financial futures of 500,000 homeowners. For these individuals who are facing foreclosure, the bill could have significant influence. Since the bill has already passed in the House, chances are good that the bill could go into effect, helping the financial situation of half a million homeowners facing a potential foreclosure.

The bill would allow borrowers who were struggling with their monthly mortgage bills to refinance easily. They would be able to see more affordable and more financially stable mortgage choices through the use of federal aid. They would get a mortgage that was federally guaranteed by the government.

This bill has been created to help only homeowners avoid foreclosure. If an individual is an investor or speculator, they are not eligible for help with this home financial situation. Specifically, this bill is set to help the homeowners who are doing their best to cover their mortgage payments, but falling short due to unrealistic settings, not the speculators who are trying to make more money in the real estate market.

There is a catch to the federal bill, however. If the homeowner takes advantage of the effort and aid given by the government, the homeowner will have to split any future home profits on the sale of the home in half with the government. For those homeowners who do not plan to move from the home for quite some time, this is less of an issue than for those homeowners who plan to move from the home in 3 to 5 years. Cutting the profits from the sale of the home in half can have a significant impact on the homeowners profit margins, especially since most individuals see the majority of their equity in the home they own.

There are arguments from taxpayers as well, and for good reason. The bill will cost taxpayers 1.7 billion dollars, according to the Congressional Budget Office. Although the price seems high, it could have been worse when you analyze the impact of increased foreclosures in the country. However, many taxpayers are arguing that we are having to pay for the mistakes of these individuals who took a mortgage when they were not eligible and the taxpayers are paying for the mess now. In essence, the taxpayers argue, they will be paying for the greed of the financial institutions whose unrealistic mortgages and subprime interest rates attracted the wrong individuals to purchase a home.

However, foreclosures can have a tremendously negative impact on the economy and the overall quality of life in an economy with higher foreclosures will drop significantly. Rising foreclosures erase future profits in nearby properties and in the economy overall. This bill has been created to avoid the big picture fallout that occurs when more and more foreclosures happen in the real estate market. The sacrifice is the taxpayer dollars to help alleviate whatever economic crisis would have evolved from the higher number of foreclosures. Something needs to be done to prevent more foreclosures and this bill is the band aid that is thought to alleviate and reverse the trend in foreclosures.

So the Question is, as a tax payer do you agree that we have some responsibility to help out the over 500,000 home owners who are facing foreclosure and saying, how can I sell my house fast? Are you comfortable with our tax dollars helping stop the foreclosure crisis?


How Forclosures are Affecting the Rental Market – Stop Foreclosure Fast

May 31, 2008

As more and more foreclosures are being seen in the marketplace, more and more coverage is being spent on the homeowners losing their homes. However, the analysis on the impact of foreclosures shouldnt stop with the homeowners. Foreclosures have long term effects both financial and culturally. As more and more people are losing their homes, fewer individuals are able to leave their rental apartments to invest in a home of their own.

What happens to the rental market when it is saturated with former homeowners who have lost their houses to foreclosure becuase they can not sell thier house, as well as individuals who are too timid to step out to purchase their new home. And the worst case scenario of all, what happens to renters whose landlords miscalculate and lose their property and the renters lose a place to call home.

The rise in foreclosures hasnt been beneficial for renters. Although initially, it might seem as though renters have a safe enclave from the perils of foreclosure, many renters are stuck right in the middle of the dilemma. More and more individuals, couples and families have to compete for affordable, low cost rental space as a result of the foreclosure increase.

In addition, when the property they are renting from becomes a foreclosure, the individual, couple or family finds themselves suddenly homeless through no fault of their own. The emotional impact of this sudden loss of home can be tremendous. Nearly 20 percent of all foreclosure homes are investor owned rental properties. That means that one in four foreclosures involves renters who are immediately forced to move. Many of these foreclosed rental properties are occurring in low income and minority communities, influencing neighborhoods that are already dealing with economically vulnerable individuals and families.

The number of renters has increased drastically over the last year. Renters are up by nearly 1 million, which is more than four times more than the growth rate between 2003 and 2006. The demand for affordable, low cost housing has significantly increased, but the supply of these low rent homes is decreasing.

Currently, studies are showing that nearly half of all rental families are contributing 30 percent of their income to their housing, while one in every four families were putting 50 percent or more of their income towards their rent and associated costs. The economic impact of these families spending the majority of their incomes on rent cannot be underestimated. If these families were living in low cost, more affordable housing, the stability and overall economic stimulus would improve.

However, the renting landscape is not thoroughly grim. Due to a weak housing sales market, more and more homes, condos and units are being put on the market as rental properties instead of sales. While the debate still exists as to whether these rental properties offer the low cost housing options that are needed on the market, the availability of more and more rental properties assumes that the situation will be alleviated to a degree. No matter what, however, the foreclosure increase is showing an impact for renters as well as homeowners alike.

If you are an investor and own a home that you are going to loose to foreclosure you have options. There are ways you can stop foreclosure fast and save the little equity you have in your investment. To sell your house and receive a free offer for your investment property, contact your local home buyer. They exist in every major metro area and you can sell your house fast.


Will Lenders Pay for the Mortage Crisis?

May 18, 2008

If your community has been largely affected by the foreclosure rates around your home, you might be wondering how this could have happened and who will be held responsible for our real estate market mess. After all, someone must have foreseen the mortgage issues headed towards many of these former hot real estate markets. Why was nothing done sooner to prevent the huge losses?

In fact, many real estate market experts have been vocal about the negative impact of the mortgage loans. However, despite warnings, many novice homeowners or uneducated buyers have found themselves in financial quagmires that are impossible to solve. As foreclosures are rising and our economy slows, lawmakers are turning their attention towards the mortgage lenders who originally propped up the cards to watch it all fall down.

Specifically, a Senate subcommittee has been formed to investigate the possibility that mortgage lenders abused the bankruptcy code to file loans for individuals who would not have qualified for the money previously. By misusing the bankruptcy system, mortgage lenders and companies were able to impose high fees whose legality is questionable. In addition, these high fees and misuse of the bankruptcy system directly played into the foreclosure problems that many homeowners are currently facing.

In essence, the Senate subcommittee is looking into whether mortgage lenders and companies intentionally played towards people who were too ignorant or overwhelmed to truly understand what financial situation they were getting into. By concentrating too highly on the property, but underplaying the fine print in the mortgage loan, these institutions were blatantly acting fraudulently and requesting too much money from individuals who simply did not have it. Although the mortgage lenders were aware that they were placing a nearly-impossible financial situation on these homeowners, they are accused of not exercising ethic restraint by giving out these loans.

The Senate subcommittee will look into not only past actions by these mortgage lenders and institutions for penalties, but also increase the level of penalties given to those lenders who manipulate the bankruptcy law for their own financial gain – and consequent ruin of other investors.

Originally, bankruptcy laws were initiated to give homeowners with financial issues the chance to keep their homes. However, with the questionably high fees demanded by these mortgage lenders and institutions, the ability to pay off the home was impossible, despite the bankruptcy protection clause. For this reason, more and more people were permanently removed from their homes while certain mortgage lenders and institutions pocketed the money.

One reason for the subcommittee investigation comes on the heels of a sharp increase in foreclosure filings. With an increase of 112 percent since last year, lawmakers are concerned that the problem will grow even worse as many mortgages will be reset and increased this year, causing numerous people who are just barely hanging on to lose control completely. With these extra fees putting the homeowner in a worse position and having them fall even more behind, the mortgage institutions are under direct scrutiny over the legality of these fees and their execution.


How Inflation and the Dollar are Hurting Your Chances to Sell Your House

May 14, 2008

Paying a mortgage bill is one of the largest monthly bills the average family faces. When the economy dips into a recession, the mortgage payment can seem increasingly daunting. Our current economic situation couples the recession with increasing gas prices and a falling dollar. What does this mean for your mortgage interest rate, your monthly payments and your house value?

Currently, Fannie Mae is allowing some homeowners to refinance their house if they owe more than what their house is actually worth. How could they have gotten into this situation? The answer is interest rates and the decrease in the value of houses. If the interest rate on the mortgage was variable or subprime, the interest rate and consequent mortgage payments can jump vastly higher than what the actual value of the house is worth. Also in almost all major cities across the nation home prices have dropped, meaning now homes have mortgages that are higher than the value of the house. This move by Fannie Mae is significant because in essence, it means that Fannie Mae is willing to take some loss on the current mortgage loan situation for some homeowners rather than let them default and lose their home entirely.

This move by Fannie Mae may help people in many areas in the nation. Cities like Las Vegas, Stockton California, Detroit Michiga, Boise Idaho and others have seen a dramatic decrease in home prices. The bad news is not all home owners will quialify for the refinance help. In order to qualify you have to meet standerds like good credit, have an certain type of existing mortgage and that mortgage had to be put in place at a certain time.

Homeowners and new home builders are in a pinch. Census data seems to have underestimated the number of new homes that have not been sold and foreclosure rates are steadily climbing. In addition, the inflation rate is growing. This pinch on the everyday homeowner can be significant, causing some homes to question whether they can survive during this treacherous time to keep their home through this recession. With the falling dollar in the market, investors are pulling funds from national banks and putting their money abroad, causing national banks and investments to feel the pinch as well. Mortgage rates are unlikely to spike any time soon, but even a small increase could spell bad news for those homeowners just holding on to making their payments on time and avoiding foreclosures.

What else could possibly affect our mortgage interest rates and the housing market overall? The weak labor market plays a large role in the housing market. The economy is in a virtual hiring freeze, while some companies have already started laying off workers. Job loss has always precipitated trouble in the housing market. In addition, overall job loss in the community makes workers and homeowners scared, limiting the housing sales. Any time the general feeling is to hold onto the house you have instead of try to sell it or take on a larger mortgage payment, we are experiencing a weaker housing market. As employers and workers feel more confident about their employment possibilities, the housing market will improve as well.

Interest rates will be dictated by the Federal Government. In early May 2008, the Fed cut the interest rate, which pushed the 10-year treasury rate up. The 30-year mortgage rate follows the treasury rate, so an increase in the payments due would have accompanied this move in the financial sector. In general, homeowners and workers are trying to maintain what they have instead of pushing to take on something new and stagnant movement like this can spell trouble for mortgage rates.

If you are in a financial situation and thinking how can I sell my house fast, then contact your local home buyer. Every major metropolitan area has professional home buyers that help solve home seller problems. They help people avoid foreclosure, with short sales, sell because of divorce, cash out of investment properties, or sell if you have no equity. So contact your local home buyer and receive a free offer for your house, you have nothing to lose.


Home Inventory Continues to Climb – How Can You Sell Your House?

May 9, 2008

A recent survey conducted by a California based real estate company reported a 1.3 percent increase in housing inventory. These are houses that are for sale on the multiple listing service or MLS through the month of April 2008. The survey was conducted on 29 major metropolitan areas across the United States.

The results of the survey show a continued supply of houses for sale on the market in most major metro areas. This increase in housing inventory will further depress home prices. After all, the supply for homes has definitely not increased.

The major cities who saw and increase in the number of houses for sale hit the market were Austin Texas at 7.1 percent, Chicago Illinois with 5.9 percent, Boston Massachusetts with 5.6 percent and Philadelphia with 5.4 percent increase.

Interestingly enough Las Vegas, currently the capital of the foreclosure crisis saw a decrease in the number of homes on the market. This in contributed to many banks accepting shorts sales and selling homes on their books they receive from foreclosure. It is also contributed to the fact that Las Vegas has one of the fastest drop in home prices in the nation.

If you own a home in Las Vegas this news is like a double edge sward. You now may have a better chance of selling your house but you obviously will be selling for much less. In some cases 25 to 30 percent less than you could have sold last year. The good news is the news of a decreased number of houses for sale in your area could be a start of a real estate bottom.

Another interesting fact is the number of home owners who have dropped the sale price on their home. Of the 29 metro cities where the survey was conducted, Orange County California tops the number of homes who had a reduced sale price last month with over 49 percent of the homes dropping price. Other areas that top the home price reduction survey are Las Vegas Nevada, Jacksonville Florida, Bakersfield California, Las Angeles California, Miami Florida, Washington D.C. and Sacramento California.

If you do need to sell your house quickly I suggest you get in touch with a local real estate investor who knows your local market and can buy your house quickly. ExpertHomeOffers.com is a company who connects home sellers with professional home buyers. They have a very large network of real estate investors who are always purchasing homes and increasing their real estate portfolio.